Amkor Technology on Monday, Oct 6 held a groundbreaking ceremony for its expanded semiconductor advanced packaging and test campus in Peoria, Arizona, increasing its planned investment from an initial $2 billion to $7 billion across two phases. The project will be the company’s first high-volume U.S. advanced packaging facility and is expected to create up to 3,000 jobs.
The expanded campus will include over 750,000 square feet of cleanroom space and a second greenfield packaging and test facility. Construction of the first manufacturing facility is scheduled for completion in mid-2027, with production expected to begin in early 2028. The new facilities will serve clients including Apple Inc and NVIDIA Corp, complementing TSMC’s wafer fabrication operations in Arizona.
“This groundbreaking represents a bold step in Amkor’s long-term strategy for growth and innovation,” said Giel Rutten, president and chief executive officer of Amkor. “We’re building a facility to meet our customers’ most advanced needs that will help shape the future of semiconductor manufacturing in the United States. Arizona offers the right mix of talent, infrastructure, and industry presence, and we’re proud to deepen our roots here.”
Federal and state programs
The expansion is supported by federal and state programs, including the CHIPS for America Program and the Advanced Manufacturing Investment Tax Credit. Strategically located in Arizona’s high-tech corridor, the campus will integrate smart factory technologies and scalable production lines to meet growing demand in artificial intelligence, high-performance computing, mobile communications, and automotive applications.
Amkor first announced plans to invest in Arizona on November 30, 2023, with a $2 billion facility in Peoria. In the following months, the company revised and expanded the investment to include additional cleanroom space and a second greenfield facility, reflecting the growing demand for domestic advanced packaging capabilities.
“This new Amkor facility groundbreaking represents a testament to what is possible when industry leaders share a common vision and work together to build a resilient, end-to-end supply chain right here in the U.S.,” said Jun He, vice president of Advanced Packaging Technology and Service at TSMC.
Economic and strategic impact
State and local officials highlighted the project’s economic and strategic impact. Arizona Governor Katie Hobbs said, “Arizona stands at the forefront of America’s semiconductor industry and Amkor is a vital part of that leadership. Amkor’s new facility represents a transformative investment that will create thousands of good-paying jobs, help build a more resilient supply chain, and solidify Arizona’s semiconductor leadership.”
Mayor Jason Beck of Peoria added, “This project will bring thousands of quality jobs and a multibillion-dollar investment to Peoria, all while strengthening our country’s critical semiconductor supply chain. Through Peoria’s strong partnership with Amkor, we have been able to display all that is possible when private and public industry come together to execute on a shared vision for innovation and growth.”
U.S. Secretary of Commerce Howard Lutnick said, “Our partnership with Amkor will bring high-volume advanced packaging to the U.S. for the first time, supporting our leading AI industry capabilities and American innovation.”
Industry partners
Industry partners emphasized the strategic value of domestic advanced packaging. Sabih Khan, Apple’s chief operating officer, said, “Amkor’s new facility will package and test the Apple silicon produced at TSMC Arizona just down the road. We’re proud to invest in Amkor through Apple’s American Manufacturing Program, which is a key part of our $600 billion commitment to create jobs and accelerate innovation right here in the U.S.”
Jensen Huang, founder and CEO of NVIDIA, said, “Amkor’s new Arizona facility is a defining milestone in bringing AI capability home. Together, we are rebuilding the supply chain — onshoring the AI technology stack that turns energy into intelligence and secures America’s leadership for the AI century.”
Once fully operational, the campus will provide end-to-end packaging and testing capabilities, complementing front-end wafer fabrication and strengthening domestic semiconductor production. The project underscores broader efforts to enhance the U.S. semiconductor supply chain and advanced manufacturing capabilities.
Tech companies are investing hundreds of billions in the U.S., to secure AI leadership and strengthen domestic semiconductor supply chains.
Amkor Technology Arizona Campus Expansion: Project Factsheet
Project Overview
Company: Amkor Technology Inc
Location: Peoria, Arizona
Project Type: Expanded semiconductor advanced packaging and test campus
Status: Groundbreaking ceremony held Monday, October 6
Investment Details
Total Investment: $7 billion (across two phases)
Initial Investment Announced: $2 billion (announced November 30, 2023)
Expanded Investment: Revised to $7 billion to include additional cleanroom space and second greenfield facility
Facility Specifications
Over 750,000 square feet of cleanroom space
Two facilities: first manufacturing facility and second greenfield packaging and test facility
First high-volume U.S. advanced packaging facility for Amkor
End-to-end packaging and testing capabilities
Timeline
Initial Announcement: November 30, 2023
Groundbreaking Ceremony: October 6, 2025
First Facility Completion: Mid-2027 (scheduled)
Production Start: Early 2028 (expected)
Employment Impact
Expected Jobs Created: Up to 3,000 jobs
Key Clients
Apple Inc
NVIDIA Corp
Complementing TSMC’s wafer fabrication operations in Arizona
Technology Applications
Artificial intelligence
High-performance computing
Mobile communications
Automotive applications
Funding & Support Programs
CHIPS for America Program
Advanced Manufacturing Investment Tax Credit
Apple’s American Manufacturing Program (investment support)
Apple’s $600 billion commitment to create jobs and accelerate innovation in the U.S.
Read also: US$ 20bn Intel semiconductor project breaks ground in Ohio
