Amkor’s Expansion: Securing America’s Chip Supply

Amkor Technology, Inc. has signed a preliminary memorandum of terms with the U.S. Department of Commerce, setting the stage for a significant expansion in Peoria, Arizona. Under the CHIPS and Science Act, this agreement will provide Amkor with up to $400 million in direct funding and access to $200 million in loans to support the project.

Amkor plans to invest approximately $2 billion into its Peoria facility, its first domestic OSAT (outsourced semiconductor assembly and test) site. The facility is expected to create around 2,000 jobs, making it the largest advanced packaging and test facility in the United States.

This expansion is crucial because, currently, most chips are packaged outside the U.S. in countries like Taiwan, Korea, China and Malaysia. The Peoria facility will bring this critical step in the chip production process back to U.S. soil, reducing the need to ship chips overseas for packaging. This shift shortens chip cycle times, reduces greenhouse gas emissions and enhances security, particularly for chips used in military and government applications.

According to estimates by Accenture, a typical semiconductor chip crosses more than 70 international borders before reaching consumers. By creating a packaging infrastructure in Arizona, Amkor will help streamline this complex global supply chain, making the U.S. less reliant on foreign suppliers and more competitive in the global market.

With 55 acres secured, the new facility will include more than 500,000 square feet of clean room space, and production is expected to begin by 2027.

Governor Katie Hobbs said it best: “Amkor’s Arizona expansion represents the most significant advanced packaging facility in the United States, reshoring a critical part of the semiconductor supply chain back to North America. This investment means good, durable jobs for Arizonans and that we will remain on the leading edge of the global economy for generations to come.”