Amkor’s $2bn Investment Boosts Arizona Packaging Plant

Amkor, the world’s second largest OSAT company, has announced plans to invest $2 billion in a packaging plant in Peoria, Arizona. The new facility is expected to employ 2,000 people and will play a crucial role in expanding the US semiconductor supply chain.

"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," says Amkor CEO Giel Rutten. "Semiconductor companies, foundries, and other supply chain partners understand the need to strategically broaden their geographic footprint. The announcement of our new advanced packaging and test facility in Arizona is a clear signal of our intent to help our customers ensure resilient supply chains and be a part of a strong American semiconductor ecosystem."

Amkor has acquired approximately 55 acres of land in Peoria and plans to build a manufacturing campus with over 500,000 square feet of clean room space. The first phase of the plant is expected to be ready for production within the next two to three years.

The company aims to provide high volume, leading-edge technologies for advanced packaging and testing of semiconductors to support critical markets such as high-performance computing, automotive, and communications. Amkor has collaborated closely with Apple on the strategic vision and initial manufacturing capability of the Peoria facility. Apple will be the first and largest customer when the new facility opens.

"As one of the first advanced packaging facilities in the US, this is a huge step forward in reducing dependence on other countries in the microchip supply chain," says Arizona Senator Mark Kelly. "When negotiating the CHIPS and Science Act, one of my top priorities was making sure companies like Amkor had the support needed to develop a resilient supply chain in places like Arizona that are leading the way in bringing microchip manufacturing back to America."

TSMC CEO C.C. Wei also commends Amkor's investment in the future of the semiconductor industry. "TSMC applauds Amkor for investing in the future of the semiconductor industry with us in Arizona. We share Amkor’s excitement for its significant investment and the value this facility will bring to TSMC, our customers, and the ecosystem."

Amkor highlights that funding from the Chips Act will be crucial for the plan to proceed. The company has already applied for funding under the Act, and the US Department of Commerce has stated that the first subsidies will be announced before the end of the year.

In addition to the Peoria plant, Amkor recently opened a $1.6 billion packaging plant in Vietnam in October, further expanding its global manufacturing capabilities.