Amkor Technology Inc. (Nasdaq: AMKR) has broken ground on a new state-of-the-art semiconductor advanced packaging and testing campus in Peoria, Arizona, expanding its total planned investment to $7 billion. The project, developed in collaboration with the Trump Administration’s CHIPS for America Program and local government partners, marks one of the largest investments in semiconductor packaging infrastructure in the United States and a key milestone in reshoring advanced chip manufacturing capabilities.
The expansion includes additional cleanroom space and a second greenfield packaging and test facility, adding over $5 billion to Amkor’s initial commitment. When complete, the campus will span more than 750,000 square feet of cleanroom space and is expected to create up to 3,000 skilled jobs. Construction of the first manufacturing building is scheduled for completion in mid-2027, with production targeted to begin in early 2028.
Amkor’s new facility will be the first high-volume advanced packaging and test site in the United States, positioning it as a cornerstone in the nation’s semiconductor supply chain. The company said the site will help address growing demand for high-performance and energy-efficient chips used in artificial intelligence, high-performance computing, automotive electronics, and mobile communication devices.
“This groundbreaking represents a bold step in Amkor’s long-term strategy for growth and innovation,” said Giel Rutten, Amkor’s President and Chief Executive Officer. “We’re building a facility that meets our customers’ most advanced needs and supports the future of semiconductor manufacturing in the United States. Arizona offers the right mix of talent, infrastructure, and industry partnerships.”
The Arizona campus will feature smart factory technologies, automated production lines, and advanced data-driven systems designed for scalability. Strategically located near TSMC’s wafer fabrication plant, the facility is intended to complement front-end manufacturing operations and establish a fully domestic, end-to-end semiconductor ecosystem.
Federal and industry leaders have welcomed the project as a critical addition to U.S. semiconductor capacity. U.S. Secretary of Commerce Howard Lutnick said Amkor’s investment “marks a defining step in bringing all stages of semiconductor manufacturing back to the United States,” crediting federal programs for accelerating advanced packaging development onshore.
Amkor’s Arizona site will support key customers including Apple and NVIDIA, two major players driving global semiconductor innovation. “At Apple, we’re pleased to help develop an end-to-end silicon supply chain in the U.S.,” said Sabih Khan, Apple’s Chief Operating Officer. “Amkor’s new facility will package and test Apple silicon produced at TSMC Arizona just down the road.” Jensen Huang, Founder and CEO of NVIDIA, described the project as “a milestone in strengthening America’s AI technology supply chain and ensuring the country’s leadership in the AI-driven industrial era.”
Jun He, Vice President of Advanced Packaging Technology and Service at TSMC, called the project “a testament to collaboration,” noting that the facility will create a streamlined, domestic ecosystem for advanced chip production.
Arizona officials have positioned the state at the forefront of the country’s semiconductor resurgence. Governor Katie Hobbs said the project “represents a transformative investment that will create thousands of good-paying jobs, strengthen supply chains, and reinforce Arizona’s semiconductor leadership.” Senator Mark Kelly described it as “a celebration of American innovation,” while Senator Ruben Gallego emphasized that “smart industrial policy like the CHIPS program is how we bring high-wage jobs back to the U.S. and secure supply chains at home.”
Local leaders, including Peoria Mayor Jason Beck, welcomed the groundbreaking as “a landmark moment” that cements Arizona’s status as a global hub for semiconductor manufacturing. Sandra Watson, President and CEO of the Arizona Commerce Authority, added that the site “will be the largest and most advanced outsourced packaging and test facility in North America.”
Industry groups also praised Amkor’s decision. John Neuffer, President and CEO of the Semiconductor Industry Association, said the project “significantly expands U.S. capacity for advanced packaging and test — critical stages in the chip production process.” Joe Stockunas, President of SEMI Americas, called the facility “a key component in reshoring semiconductor manufacturing and strengthening domestic innovation.”
Amkor’s Arizona expansion builds on a wave of semiconductor investments across the state, joining major developments from TSMC and Intel. Together, these projects represent more than $210 billion in semiconductor-related investments, solidifying Arizona’s position as a cornerstone of America’s high-tech manufacturing landscape.
