Amkor, the leading American provider of outsourced semiconductor assembly and test (OSAT), has unveiled plans to construct an innovative packaging and testing facility in Peoria, Arizona. Amkor estimates it will invest around $2 billion and create 2,000 jobs at the new facility.
Apple will be the first and largest customer of the new facility.
“Apple is deeply committed to the future of American manufacturing, and we’ll continue to expand our investment here in the United States,” said Jeff Williams, Apple’s chief operating officer. “Apple silicon has unlocked new levels of performance for our users, enabling them to do things they could never do before, and we are thrilled that Apple silicon will soon be produced and packaged in Arizona.”
The city of Peoria, the Arizona Commerce Authority, and government authorities have strongly backed the project as part of Arizona’s growing semiconductor ecosystem, creation of high-tech employment opportunities, and enhancement of economic vitality in the Phoenix metropolitan area and beyond.
“It is no secret that our nation is reshoring its advanced manufacturing industries. We are proud of Peoria’s global leadership in this movement, and the significant capital investment and quality jobs that it brings to our community,” Peoria Mayor Jason Beck said. “This tremendous announcement is a credit to the City Council’s commitment to economic development, and staff’s hard work and dedication on this project.”
Amkor initially established itself in the Greater Phoenix region in 1984 and is enthusiastic about broadening its influence in Arizona’s advancing semiconductor sector. This new manufacturing site will strategically position Amkor within a thriving network of front-end fabs, IDMs, and suppliers that already exist or are expanding in the area, such as TSMC, Intel, Applied Materials, ASML, and other key players.
Amkor has applied for funding through the CHIPS Act, which allocates around $280 billion in funding to enhance domestic semiconductor research and manufacturing within the United States. This includes $39 billion in incentives to support chip production within the country, a 25% investment tax credit for manufacturing equipment expenses, and $13 billion designated for semiconductor research and workforce training. The primary objective is to address the competitive challenge posed by China in this sector.
“Amkor’s announcement is a historic step forward for Arizona that will bolster America’s national security and build a more resilient supply chain, bring billions of dollars into our state, and create thousands of good-paying jobs for Arizona workers,” Governor Katie Hobbs said. “With this project, one of the most significant investments in advanced packaging in America, Arizona will solidify itself as a world leader in the semiconductor industry. I was glad to meet with the Arizona Commerce Authority and Amkor leadership in South Korea to discuss future investments in Arizona and am proud to have them as a partner. Together, we’ll continue to expand the semiconductor ecosystem and continue Arizona’s long history of leadership in the advanced manufacturing sector.”
As for Apple, the company’s investments in advanced manufacturing are part of the commitment the company made in 2021 to invest $430 billion in the U.S. economy over five years. Today Apple is on pace to meet its target through direct spending with American suppliers, data center investments, capital expenditures in the U.S., and other domestic spending.