The American Amkor Technology, Inc., one of the world’s largest providers of semiconductor packaging and testing services, has confirmed definitive plans to build its new advanced packaging and testing facility in Peoria, Arizona. The project, valued at $2 billion, will be developed on a 104-acre site within the Peoria Innovation Core, in the northern part of the city.
The decision follows the unanimous approval of the Peoria City Council, which facilitated a land exchange and a revised development agreement. Consequently, Amkor is changing its initial location in the Five North at Vistancia community (22 acres) to a larger and more flexible space.
Strategic Investment and Timeline
Construction will commence in the coming days, with the company expecting production to start in early 2028. According to Amkor President and CEO, Giel Rutten:
“As the leading advanced packaging company in the U.S., Amkor is proud to invest in domestic semiconductor manufacturing and strengthen the American supply chain. This new facility gives us the flexibility to meet the increasing demands of our customers.”
The project will create 2,000 new jobs and reinforce the company’s presence in the Phoenix metropolitan area, where it has been operating since 1984.
A Milestone for Peoria and Arizona’s Ecosystem
For the city, this installation represents a milestone. Mayor Jason Beck highlighted the significance of the partnership:
“Today marks a historic moment for the partnership between the city of Peoria and Amkor. We are not only securing a $2 billion investment and 2,000 new jobs but also solidifying Peoria’s key role in strengthening the critical semiconductor supply chain in the U.S.”
Arizona has become one of the most dynamic hubs in the global chip industry. With giants like TSMC building its mega-factory in Phoenix, and now with Amkor’s expansion, the state is reinforcing its role as a strategic center for sectors like computing, communications, and automotive.
Supply Chain Collaboration
The new plant will enable Amkor to work closely with TSMC and other key manufacturers, offering high-volume advanced packaging and testing services. This step is critical to ensure chips manufactured in the U.S. complete their production cycle domestically, reducing reliance on Asian processes and increasing supply chain resilience against geopolitical risks.
Boosting U.S. Industrial Policy
Amkor’s investment aligns with the U.S. national strategy to repatriate and diversify semiconductor manufacturing, supported by initiatives like the CHIPS and Science Act. The goal is to mitigate vulnerabilities exposed during the pandemic and amid trade tensions with China.
Through projects like this, the U.S. not only expands its chip production capacity but also secures skilled jobs, fosters local innovation, and enhances its position in the global technological competition.
Conclusion
The new Amkor facility in Peoria marks a decisive step forward for Arizona’s semiconductor ecosystem and the U.S. strategy to regain industrial leadership in this sector. With $2 billion in investment, 2,000 jobs, and an expected startup in 2028, the project combines local economic development with geopolitical importance, reinforcing U.S. independence in a critical technological market.
Frequently Asked Questions (FAQs)
Where will Amkor’s new plant be located?
In the Peoria Innovation Core, a 42-acre site in northern Peoria, Arizona.
When will production begin?
Construction starts in 2025, with production expected to begin in early 2028.
What economic impact will it have on the region?
It will generate 2,000 direct jobs and attract new opportunities in sectors such as computing, communications, and automotive.
How does this project fit into U.S. strategy?
It strengthens the national semiconductor supply chain, reduces dependence on Asia, and supports the industrial policy of the CHIPS Act.
via: semiconductor-digest