Amkor Technology has expanded to two phases its Arizona project for a state-of-the-art outsourced semiconductor advanced packaging and test campus. The upgraded plan will increase the project’s total cost by over $5 billion to a total of $7 billion, Amkor said during the groundbreaking ceremony at the project’s site in Peoria, Arizona Monday.
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Amkor’s Arizona Campus Features
According to the company, the expanded project will add more cleanroom space and a second greenfield facility, positioning the campus as a cornerstone of America’s advanced packaging capabilities and supporting key customers, such as Apple and NVIDIA. Upon the two phases’ completion, the facility will feature over 750,000 square feet of cleanroom space and create up to 3,000 high-quality jobs.
Construction of the first facility is expected to be completed in mid-2027, with production starting in early 2028. The facility’s features will include smart factory technologies and scalable production lines to meet the rising chips demand from industry sectors in artificial intelligence, high-performance computing, mobile communication and car manufacturing.
CHIPS Act Funding Support
In July 2024, the Department of Commerce agreed to provide Amkor with up to $400 million in proposed direct funding under the CHIPS and Science Act to support the Arizona plant’s construction. Under a preliminary memorandum of terms with the company, the department also opened Amkor access to $200 million of proposed loans from the CHIPS Program Office and up to 25 percent of tax credit from the Department of the Treasury.
The facility’s groundbreaking is “a bold step in Amkor’s long-term strategy for growth and innovation,” said Giel Rutten, the company’s president and CEO.
“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,” the Amkor head added.
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