Amkor Technology announced plans yesterday to construct a $2 billion advanced packaging and semiconductor test facility in Peoria, Arizona, expanding the company’s U.S. supply chain.
The site, which Amkor says will be the largest outsourced packaging plant in the U.S., will create roughly 2,000 jobs and span over 500,000 square feet.
“Expansion of a US semiconductor supply chain is underway, and as the largest US-headquartered advanced packaging company, we are excited to lead the charge in bolstering America’s advanced packaging capabilities," President and CEO Giel Rutten said in a statement.
The facility’s first phase of production is expected to be operational within the next two to three years and will focus on advanced packaging and semiconductor testing for markets such as high-performance computing, automotive and communications.
Amkor collaborated with Apple on the manufacturing facility, which will package and test chips produced for the iPhone maker at a nearby Taiwan Semiconductor Manufacturing Company semiconductor fab. When Amkor’s new facility opens, Apple will be its first and largest customer, the company said.
TSMC broke ground on its first semiconductor fab in Arizona in 2021, one of two sites it’s building in the state as part of a $40 billion investment. The first Arizona chip fab was scheduled to open by next year, but was pushed back to 2025 because of challenges finding workers with expertise in chip equipment installation.
The second Arizona TSMC facility, which will make 3nm process technology, is still set to open by 2026.
Amkor’s new manufacturing location will position the company among an ecosystem of chipmakers and suppliers in Arizona, including heavy-hitters like TSMC, Intel and Applied Materials.
The multibillion-dollar investment aligns with the Biden administration's push to strengthen domestic semiconductor manufacturing. The project has received support from the city of Peoria and the Arizona Commerce Authority, according to Amkor. A final development agreement is scheduled to be reviewed by the Peoria city council in early 2024.
Amkor noted in its announcement that it applied for money through the CHIPS and Science Act to help fund the project. The Commerce Department unveiled plans earlier this month to use the law’s funds to offer $3 billion in chip packaging manufacturing investments.
