Amkor Technology has broken ground on a $7 billion advanced packaging and test campus in Peoria, Arizona. The new facility marks a major expansion of U.S. semiconductor capacity.
At a ceremony marking the start of construction, Amkor executives and state officials highlighted its strategic importance. They said the project will create thousands of jobs and reinforce domestic supply chain resilience.
Project Factsheet: Amkor Peoria Advanced Packaging Campus
Developer / Owner: Amkor Technology
Project Type: Semiconductor advanced packaging & test campus
Investment Size: $7 billion (across two phases)
Cleanroom Space: Over 750,000 square feet
Estimated Jobs: Up to 3,000 high-quality positions
First Phase Completion: Mid-2027
Production Start: Early 2028
Support Programs: CHIPS for America, AMTIC, state & local incentives
Strategic Rationale & National Importance
Arizona is already a hub for semiconductor manufacturing. Therefore, Amkor’s new campus complements front-end fabs by adding advanced packaging capability in the U.S. Rather than shipping wafers overseas for back-end processes, companies can now keep more operations onshore.
Moreover, this investment is supported by federal and state incentives, including the CHIPS for America program and the Advanced Manufacturing Investment Tax Credit. These policies aim to stimulate domestic high-tech manufacturing and reduce reliance on global supply chains.
Officials view the Peoria site as transformational. They expect the project to anchor the region’s high-tech corridor, draw further investment, and boost Arizona’s competitive position in semiconductor fabrication and packaging.
Teams, Phasing & Execution
Amkor’s expanded investment covers two phases, increasing earlier commitments by more than $5 billion to reach the full $7 billion total. The first manufacturing buildings, including cleanrooms, are scheduled for completion in mid-2027. After that, systems installation and testing will follow, leading to production in early 2028, paralleling sustainability efforts such as the TSMC Arizona industrial water recycling facility designed to support advanced chip production in the region.
During construction, project teams will deploy smart factory technologies, modular systems, and scalable production lines. This approach enables phased commissioning, and it allows equipment to be brought online progressively as building systems sync.
To minimize delays, Amkor will coordinate closely with contractors, local authorities, and technology vendors. Procurement and logistics will be tightly managed to avoid supply chain bottlenecks, especially in cleanroom and semiconductor-grade components.
Economic & Workforce Impact
The campus is expected to generate up to 3,000 skilled jobs in advanced semiconductor operations. Moreover, it will drive broader economic development through related service, supplier, and infrastructure growth.
In addition, the investment signals confidence in U.S. semiconductor sovereignty. By creating domestic advanced packaging capacity, the project helps reduce trade risks and shipping costs. It also strengthens American competitiveness in AI, high performance computing, telecommunications, and automotive electronics.
Risks & Mitigation Strategies
Major challenges include precision manufacturing demands, cleanroom component sourcing, schedule coordination across sophisticated systems, and workforce training. To address these, Amkor plans staged rollouts, parallel commissioning, and partnerships with local training institutions.
Furthermore, tight oversight over quality control, vendor alignment, and process validation will help mitigate delays or performance issues. The phased strategy gives room for adjustments while maintaining momentum.
Next Steps & Outlook
Over the next two years, the team will finalize design details, secure permits, and begin site work. Construction will ramp toward the first occupancy and production milestone in 2027–2028. Simultaneously, hiring, training, and systems integration will prepare the campus for full operations.
Ultimately, Amkor’s Peoria project is more than a factory build. It is a bet on U.S. semiconductor resilience, industrial sovereignty, and regional economic growth. As global demand for advanced chips accelerates, this campus may become a linchpin in America’s high-tech infrastructure.
