News Summary
Amkor Technology has launched construction on a $7 billion semiconductor manufacturing campus in Peoria, marking a significant increase from its initial $2 billion investment. Set to create around 3,000 jobs, this facility will focus on chip packaging and testing for high-profile clients such as Apple and Nvidia. Scheduled for completion in mid-2027, it will become North America’s largest outsourced packaging plant, bolstering the domestic semiconductor supply chain amid growing technological demands.
Arizona has officially begun construction on a major semiconductor manufacturing campus in Peoria, thanks to Amkor Technology’s significant investment of $7 billion. This remarkable financial commitment marks a substantial increase from the company’s initial plan of $2 billion, showcasing a clear intent to bolster the U.S. semiconductor supply chain.
The first manufacturing facility on this expansive campus is slated for completion in mid-2027, with production expected to commence in early 2028. Encompassing more than 750,000 square feet dedicated to cleanroom manufacturing space, the facility will primarily focus on packaging and testing chips for high-profile clients, which include major players such as Apple and Nvidia.
Amkor’s strategic investment not only aims to enhance the domestic semiconductor supply chain, which has been heavily dependent on imports, but also promises to generate approximately 3,000 jobs in the Peoria region. This endeavor underscores Peoria Mayor Jason Beck’s vision to elevate the technological landscape of the city, transforming it into a prominent hub for technology and industry.
Significance of the Project
The establishment of this facility is particularly noteworthy as it is projected to become the largest outsourced packaging plant in North America, further solidifying Arizona’s status as a critical center for semiconductor manufacturing. The decision to scale the investment was influenced by the presence of TSMC’s nearby wafer fabrication site, which is believed to be a contributing factor in Amkor’s enhanced plans.
The Amkor Technology campus not only represents a vital step in expanding manufacturing capabilities, but it also reflects a broader public-private initiative aimed at reindustrializing America’s semiconductor value chain. This initiative is crucial as the United States imported $22.6 billion worth of semiconductors in 2022, highlighting an ongoing reliance on foreign sources.
Economic Impacts and Financial Backing
Various financial incentives support the groundbreaking project, including provisions from the Chips and Science Act, an advanced manufacturing investment tax credit, as well as support from state and local governments. These incentives are designed to promote the growth and development of the semiconductor sector within the United States, enhancing capabilities in areas such as artificial intelligence, high-performance computing, mobile communications, and automotive applications.
The Amkor facility aims to address the growing demands of the market, aligning with trends in technology and innovation. With an emphasis on creating robust infrastructure for semiconductor development, this campus not only strengthens Amkor’s operational presence but also enhances job opportunities within the local economy.
This investment complements existing semiconductor initiatives in Arizona, which collectively exceed $210 billion in planned or ongoing projects. As the industry evolves, the development of this campus stands as a vital step in securing a more resilient and self-sufficient semiconductor supply chain in the United States.
In summary, Amkor Technology’s groundbreaking of its $7 billion semiconductor manufacturing campus in Peoria signals a transformative development for both the company and the region. With a focus on technological advancement, job creation, and bolstering the domestic supply chain, the facility is poised to make a significant impact in the years to come.
Deeper Dive: News & Info About This Topic
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Author: STAFF HERE PHOENIX WRITER
The PHOENIX STAFF WRITER represents the experienced team at HEREPhoenix.com, your go-to source for actionable local news and information in Phoenix, Maricopa County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Waste Management Phoenix Open, Cactus League Spring Training, and Arizona State Fair. Our coverage extends to key organizations like the Greater Phoenix Chamber of Commerce and Visit Phoenix, plus leading businesses in technology and healthcare that power the local economy such as Intel and Banner Health. As part of the broader HERE network, including HERETucson.com, we provide comprehensive, credible insights into Arizona's dynamic landscape.
