Amkor Secures $600m Backing for $2bn US Packaging Plant

Amkor Technology has taken a significant step forward in its expansion plans by securing the first stage of $400 million in direct funding for a new packaging and test plant in Arizona under the US CHIPS Act. This move marks a strategic development for the company, which aims to establish its first domestic OSAT facility in Peoria, Arizona, with Apple and TSMC as key customers.

The $2 billion investment in the plant is set to make it the largest outsourced advanced packaging and test facility in the US, with projections to employ up to 2000 individuals. In addition to the direct funding, Amkor has also gained access to $200 million in proposed loans as part of the deal with the US government, further solidifying its financial backing for the project.

By establishing the packaging and test facility in Arizona, Amkor is strategically positioning itself to capitalize on its role as a key manufacturing partner for semiconductor companies, foundries, and OEMs. The company has secured approximately 55 acres of land for the manufacturing campus, with plans to construct over 500,000 square feet of clean room space to accommodate its operations.

Collaborating closely with TSMC, Amkor is focused on providing high-volume, cutting-edge technologies for advanced packaging and testing of semiconductors. This partnership aims to support critical markets such as high-performance computing, automotive, and communications, highlighting the importance of innovation and technological advancement in the semiconductor industry.

Amkor's expansion in Arizona signifies a significant milestone in the company's growth trajectory. Having first established a presence in the Greater Phoenix area in 1984, the decision to expand its footprint in the state's semiconductor industry underscores its commitment to fostering domestic semiconductor manufacturing capabilities and contributing to the growth of the local economy.