Amkor Technology has announced plans to construct an advanced packaging and test facility in Peoria, Arizona. Amkor expects to invest around US$2 billion and employ approximately 2,000 people at the new site by the time the project is completed.
When finished, this will be the largest outsourced advanced packaging facility in the US, according to 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," said Amkor president and CEO Giel Rutten. "Semiconductor companies, foundries, and other supply chain partners understand the need to strategically broaden their geographic footprint. The announcement of our new advanced packaging and test facility in Arizona is a clear signal of our intent to help our customers ensure resilient supply chains and be a part of a strong American semiconductor ecosystem."
In recent Congressional testimony, Commerce Secretary Gina M. Raimondo identified advanced packaging as a key target area for the US government's efforts to restore American semiconductor manufacturing. The Commerce Department also made clear that developing robust advanced manufacturing capacity and capability is a priority and essential to the success of the CHIPS program.
Amkor has requested CHIPS funds to ensure the success of this new plant project. The CHIPS and Science Act was passed to boost the country's competitiveness, innovation, and national security in the semiconductor industry. The federal government will pay US$39 billion in competitive grants to manufacturers as part of the US$52.7 billion initiative to finance the construction, expansion, and upgrade of buildings and equipment. These funds will be critical in moving Amkor's effort forward.
Apple to be first customer
Amkor has secured approximately 55 acres of land to build a state-of-the-art manufacturing campus with more than 500,000 square feet of cleanroom space. The first phase of the manufacturing plant is targeted to be ready for production within the next two to three years, according to the company.
Amkor stated that the company collaborated closely with Apple on the strategic vision and initial manufacturing capability of the Peoria plant, which will package and test chips produced for Apple at the nearby TSMC fab. Apple will be its first and largest customer when the new facility opens.
"Amkor has been a strategic OSAT partner to TSMC for many years," said CC Wei, CEO of TSMC. "TSMC applauds Amkor for investing in the future of the semiconductor industry with us in Arizona. We share Amkor's excitement for its significant investment and the value this facility will bring to TSMC, our customers, and the ecosystem."
"Apple is committed to help build a new era of advanced manufacturing here in the US," said Jeff Williams, Apple COO. "Apple and Amkor have worked together for over a decade packaging chips used extensively in all Apple products, and we are thrilled that this partnership will now deliver the largest OSAT advanced packaging facility in the United States."
