Amkor to Build $2 Billion Semiconductor Fabrication Facility in Peoria City, USA

Amkor Technology is developing a USD 2 billion semiconductor packaging and testing facility in Peoria City,Arizona, USA. The Peoria City Council approved a development agreement with Amkor Technology. Through the agreement, Amkor has committed to developing the largest outsourced semiconductor packaging and testing (OSAT) facility in the United States, which will be developed in multiple phases. Furthermore, the project will generate 2,000 new local jobs.

Location and Infrastructure

Amkor will build the campus on 56 acres of land, which will be situated in Five North at Vistancia, Peoria City. The location has a unique mix of skilled workers and adequate infrastructure. 

Additionally, public infrastructure associated with the project will be constructed and reimbursed by a three-way agreement with Vistancia Development LLC, Amkor and Peoria, with the city reimbursing up to $3 million toward the cost.

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Focus on Packaging and Testing

The Peoria facility will primarily focus on packaging and testing chips produced at the nearby TSMC plant, with Apple as the anticipated largest customer. Semiconductor packaging involves housing the delicate chips in protective enclosures, while testing ensures their functionality before they are integrated into electronic devices.

Government Policy

This multi-billion dollar investment aligns perfectly with the Biden administration's push for domestic semiconductor manufacturing independence. The project has received support from the city of Peoria and the Arizona Commerce Authority, further solidifying its significance. Amkor has also applied for funding through the CHIPS and Science Act, which provides USD 39 billion in incentives for semiconductor manufacturing.

Objectives of the Project

The project aims to establish the largest outsourced semiconductor packaging and testing facility in the United States, contributing to a more robust and self-sufficient domestic chip industry. The project is expected to generate 2,000 new jobs and contribute to the economic growth of Peoria and the surrounding region through construction, operation, and associated activities.

Amkor’s plans for the Peoria facility will 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.

About Amkor Technologies

Amkor Technology, Inc. is a prominent player in the field of semiconductor product packaging and test services. Founded in 1968, Amkor was a pioneer in outsourcing IC packaging and testing. Today, it stands as a strategic manufacturing partner for some of the world’s leading semiconductor companies, foundries, and electronics OEMs,

Amkor provides outsourced semiconductor packaging and test services (OSAT). This includes designing, packaging, and testing integrated circuits (ICs) for various applications. The company has been headquartered in Arizona since 2005, after moving from West Chester, Pennsylvania, in the United States. To further learn about Amkor's upcoming and ongoing semiconductor projects, check out our global semiconductor database.

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