Amkor Technology, a provider of semiconductor packaging and test services, this week announced the groundbreaking and expanded planned investment of its new state-of-the-art outsourced semiconductor advanced packaging and test campus in Peoria, Arizona.
The expanded investment includes additional cleanroom space and a second greenfield packaging and testing facility, increasing the total project investment by more than $5 billion to a total of $7 billion across two phases. The project was previously expected to cost some $2 billion and create up to 2,000 jobs. The expanded scope calls for as many as 3,000 new jobs.
Amkor's investment supports the broader strategy to strengthen U.S. semiconductor leadership and will be the first U.S.-based high-volume advanced packaging facility.
"Arizona stands at the forefront of America's semiconductor industry, and Amkor is a vital part of that leadership. Amkor's new facility represents a transformative investment that will create thousands of good-paying jobs, help build a more resilient supply chain, and solidify Arizona's semiconductor leadership," said Governor Katie Hobbs, in a statement.
Upon completion of both phases, the campus will feature more than 750,000 square feet of cleanroom space. Construction of the first manufacturing facility on the campus is expected to be completed in mid-2027, with production beginning in early 2028.
The new greenfield facilities will support customers like Apple and NVIDIA. Amkor's expanded investment is supported by the CHIPS for America Program, the Advanced Manufacturing Investment Tax Credit, as well as state and local governments.
The campus will feature smart factory technologies and scalable production lines to meet evolving market demands for AI, high-performance computing, mobile communications, and automotive applications. The plant will focus on advanced packaging and testing technologies and will complement TSMC's front-end wafer fabrication for full end-to-end semiconductor manufacturing.
The news comes the same week that Semicon West, a premier microelectronics conference in the U.S., is taking place at the Phoenix Convention Center.
Governor Hobbs spoke during the conference's opening CEO Summit, highlighting the state's innovation and advanced manufacturing.
"The semiconductor industry is experiencing a renaissance in Arizona unlike anywhere else," Hobbs said. "From leading-edge manufacturing to R&D, equipment, suppliers, workforce development, and advanced packaging, it's all happening here."
Arizona leads the nation in recent semiconductor investment, attracting more than 60 industry expansions since 2020, representing more than $205 billion in announced investment.
The state is home to North America's most advanced chip processing technology and pioneering R&D and workforce development initiatives in collaboration with universities and community colleges.
