Amkor plans to build $2B semiconductor packaging and testing facility in Peoria, AZ

Home » News » Amkor plans to build $2B semiconductor packaging and testing facility in Peoria, AZ

Amkor Technology Inc., based in Tempe and listed on Nasdaq as AMKR recently announced its intention to invest a $2 billion, in a semiconductor advanced packaging and testing facility in Peoria, Arizona. This strategic move is expected to generate around 2,000 job opportunities in the Phoenix area, which is a significant step forward in bolstering the semiconductor ecosystem of the United States.

This investment aligns with the objective of bringing back chip assembly operations to U.S thereby addressing a critical gap within the semiconductor chip supply chain. The Peoria facility will play a role in the stages of semiconductor chip manufacturing particularly focusing on packaging and testing processes that have traditionally been carried out in regions like Asia.

The upcoming Amkor plant will process chips originating from the Phoenix TSMC fab showcasing an effort with Taiwan Semiconductor Manufacturing Co. (TSMC). Notably this venture will greatly benefit Apple Inc. as Amkor is set to handle the packaging and testing of semiconductor chips for this tech giant at their Peoria factory. This further strengthens Amkors partnership, with Apple that has spanned over a decade with Apple contributing towards shaping the strategic vision and initial manufacturing plans for this facility.

Amkors choice to set up the factory, in Peoria, which is located next to the TSMC facility in the north part of the Valley reinforces the regions status as a center for semiconductor manufacturing. The state of the art packaging and testing features of this 500,000 square feet facility spanning over 55 acres will serve the needs of industries such, as high performance computing, technology and communication sectors.

Amkor is taking a step, towards gaining support by applying for funding through the CHIPS and Science Act. This act has allocated $52 billion to strengthen the semiconductor ecosystem in the United States. Senator Mark Kelly of Arizona emphasized how Amkors project will help reduce reliance on foreign microchip supply chains marking a progress for the state.

First phase of Peoria facility

The first phase of the Peoria project is expected to be and running within two to three years pending approval from the Peoria City Council in 2024. The exact location of the facility has not been disclosed yet creating excitement about its impact on the community.

As Amkor takes this step to reinforce the semiconductor ecosystem the Peoria plant becomes a symbol of resilience and supply chain strength. This initiative aligns with Amkors commitment to nurturing a semiconductor industry in the United States. CEO Giel Rutten sees this facility as a message of intent to support customers in building supply chains. Amkors Peoria plant represents a leap, in advancing the American semiconductor landscape promising a brighter and more self-reliant future.

Read also: US$ 20bn Intel semiconductor project breaks ground in Ohio