Amkor Technology, Inc. (Nasdaq: AMKR), a prominent semiconductor packaging and test services provider, has revealed plans to construct an advanced packaging and test facility in Peoria, Arizona. The project is projected to involve an investment of around $2 billion and anticipates hiring approximately 2,000 individuals upon its full completion.
As the solitary US-based outsourced semiconductor assembly and test (OSAT) service provider equipped with advanced packaging technology capabilities and extensive manufacturing experience, Amkor’s new facility will emerge as the largest outsourced advanced packaging establishment in the United States.
According to Giel Rutten, President and CEO of Amkor, “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.”
The development aligns with the increased focus of the US government on advanced packaging as a crucial element in revitalizing American semiconductor manufacturing, as highlighted in recent Congressional testimony by Commerce Secretary Gina M. Raimondo.
Spanning approximately 55 acres, the forthcoming manufacturing campus is set to accommodate over 500,000 square feet of clean room space. The initial phase aims to commence operations within the next two to three years, catering to critical markets such as high-performance computing, automotive, and communications by offering advanced packaging and semiconductor testing technologies.
Amkor’s collaboration with Apple played a pivotal role in shaping the strategic vision and initial manufacturing capability of the Peoria facility, with Apple identified as the primary customer upon the facility’s commencement.
The initiative has garnered substantial support from the City of Peoria, the Arizona Commerce Authority, and government authorities. Arizona Senator Mark Kelly highlighted the project’s significance in reducing dependence on other countries in the microchip supply chain and strengthening national security.
Governor Katie Hobbs emphasized the project’s potential to position Arizona as a global semiconductor industry leader and enhance supply chain resilience.
Amkor’s CEO, Dr. CC Wei of TSMC, Apple’s COO Jeff Williams, and Giel Rutten underscored the investment’s importance in advancing semiconductor manufacturing and strengthening supply chains, emphasizing the significance of the project in enhancing regional and global technological landscapes.
