Amkor Technology Advances $2 Billion Semiconductor Plant in Peoria

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Construction of Amkor's semiconductor plant, a project aimed at boosting local economy but facing community opposition.

News Summary

Amkor Technology is set to break ground on a $2 billion semiconductor packaging plant in Peoria, Arizona. The facility will create 2,000 jobs but faces opposition from local residents concerned about traffic and contamination. With a total size of 2.1 million square feet, the plant aims for sustainability but has sparked community protests and a town hall meeting to address concerns.

Peoria, Arizona — Amkor Technology is moving forward with plans to break ground on its anticipated $2 billion semiconductor packaging plant in Peoria later this year, despite substantial opposition from local residents. The facility, once operational, is set to become the largest outsourced packaging plant in the United States, primarily processing chips supplied by Taiwan Semiconductor Manufacturing Co. from a nearby facility in North Phoenix.

The new plant is projected to generate approximately 2,000 jobs and foster economic growth both in Peoria and the surrounding areas. However, opposition from the local community has emerged, primarily due to concerns regarding increased traffic, potential chemical contamination, and the facility’s proximity to the residential neighborhood of Vistancia.

The proposed site is strategically located within Vistancia’s commercial hub, known as Five North, just west of Loop 303. Peoria City Council approved the development unanimously in February 2024, despite vocal protests from residents who are advocating for the plant’s relocation. Many residents argue that the project’s location contradicts the area’s original master plan, which designated it for commercial developments such as hospitals and educational facilities.

Amkor’s acquisition of the property included 56 acres of land for $4.12 million, as part of a development agreement established with both the City of Peoria and Vistancia. The facility will cover an expansive area of approximately 2.1 million square feet, with the initial construction phase encompassing nearly 1.5 million square feet, which will include maintenance buildings and parking areas outfitted with solar panels. Building heights will vary from 15 feet to 118 feet, which is close to the maximum height permitted by local zoning regulations.

The community has expressed feelings of being misled about the project’s magnitude, noting that the initial proposal indicated a facility size of around 500,000 square feet, significantly smaller than the currently anticipated scale. Furthermore, plans for sustainability have been put forward, indicating that the plant will utilize 2 million gallons of water per day while ensuring that approximately 80% of this water is recycled back into the city.

Construction on the facility is expected to commence no later than September 30, aligning with the development agreement after City staff reviews Amkor’s site plans. Despite the affirmative developments, local concerns continue to mount. The group Citizens for Smart Growth is actively voicing opposition to the project and is planning a protest to amplify their stance against it.

To facilitate community engagement, a town hall meeting has been scheduled for February 27, hosted by Peoria councilmember Matt Bullock, where residents will discuss the implications of the project and the City’s control over its development. Although Amkor has asserted that its site plans will comply with previous agreements and thus will not require any additional zoning changes, the local community remains vigilant in its opposition, advocating for a solution that addresses their concerns.

As the groundbreaking date approaches, the future of Amkor’s semiconductor plant continues to be a focal point of discussion in Peoria, reflecting broader tensions over economic development and residential community interests.