Amkor Technology, Inc., a leading provider of semiconductor packaging and test services, announced revised plans for the location of the company’s new semiconductor advanced packaging and test facility in Arizona.
The facility will be constructed on a 104-acre site within the Peoria Innovation Core, in north Peoria, AZ. Peoria City Council unanimously approved a land swap and an amended development agreement, allowing Amkor to exchange its previously designated 56-acre parcel within the Five North at Vistancia community. Construction of the facility will begin within days, with production expected to start in early 2028.
“As the largest advanced packaging company in the U.S., Amkor is proud to invest in U.S. semiconductor manufacturing and strengthen the U.S. semiconductor supply chain,” said Giel Rutten, Amkor’s president and chief executive officer. “This new site offers the flexibility to meet growing customer demand and reinforces our commitment to U.S.-based chip manufacturing.”
Amkor’s outsourced packaging plant has been in the works for years. It received up to $407 million in direct funding from the CHIPS and Science Act last year to support the $2 billion investment and creation of more than 2,000 jobs for the Peoria area.
The project was originally slated for a 56-acre parcel within the Five North mixed-use development at Vistancia, but changed course after facing pushback from nearby residents who raised environmental and health concerns. Prior to the land swap, Amkor posted webinars in an effort to get the community on board with the project.
Ultimately, the company relocated as market demands and increased project scope necessitated a larger site, according to a news release from the city of Peoria. The new site is also located farther away from local schools, businesses and residents.
Amkor collaborated with Apple on the project, which is expected to package and test chips produced for the iPhone maker at a nearby Taiwan Semiconductor Manufacturing Co. fabrication facility. In 2023, Amkor said Apple will be its first and largest customer when the factory opens.
Amkor generated revenue of $1.5 billion in its latest quarter, up 3% from a year ago. It also posted net income of $54.4 million for the period, down 19% over last year.
“Today represents a historic milestone for the partnership between the City of Peoria and Amkor,” said Peoria Mayor Jason Beck. “By securing this land, we are not only bringing a $2 billion investment and 2,000 new jobs to our community, but we are further solidifying the important role Peoria will play in strengthening America’s critical semiconductor supply chain. This outcome demonstrates the power of strong partnerships and smart long-term planning.”
Amkor has operated in Greater Phoenix since 1984. As part of Arizona’s growing semiconductor ecosystem, Amkor will work with TSMC and other key semiconductor companies to provide advanced, high-volume manufacturing for industries such as computing, communications, and automotive.
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