Amkor to Construct New Semiconductor Facility in Arizona

Amkor Technology announced plans to construct a new semiconductor facility in Arizona on a 104-acre site in the Peoria Innovation Core. The facility will begin construction within days and start production in early 2028. Amkor will work with TSMC and other semiconductor companies to provide advanced manufacturing for industries such as computing, communications, and automotive. The facility will be part of Arizona's growing semiconductor ecosystem.

Amkor Technology, Inc. (Nasdaq: AMKR), the world's largest U.S.-based OSAT (Original Semiconductor Assembly and Test) provider, has announced plans to construct a new semiconductor advanced packaging and test facility in Arizona. The 104-acre site is located within the Peoria Innovation Core in north Peoria, AZ [1]. The facility will commence construction within days and is expected to start production in early 2028.

The decision to establish this new facility in Arizona is part of Amkor's strategy to strengthen the U.S. semiconductor supply chain and meet growing customer demand. The company has been operating in Greater Phoenix since 1984 and is now working with TSMC and other key semiconductor companies to provide advanced, high-volume manufacturing for industries such as computing, communications, and automotive [1].

The construction of this facility is expected to bring a $2 billion investment and 2,000 new jobs to the community [1]. Peoria Mayor Jason Beck stated, "Today represents a historic milestone for the partnership between the City of Peoria and Amkor. 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" [1].

Amkor's commitment to U.S.-based chip manufacturing is significant, as it aligns with broader industry trends. TSMC, a key partner in the semiconductor ecosystem, has also been investing in Arizona, constructing a water recycling plant at its Arizona site to address local water challenges and support its advanced manufacturing operations [3]. This plant will recycle 85-90 percent of industrial wastewater, converting it into ultrapure water for chip production.

The semiconductor industry is facing rising water stress, despite efficiency gains. TSMC's Arizona investment underscores how water-stressed regions remain attractive for chip fabs, even with risks. By 2030-2040, up to 40 percent of global semiconductor plants are expected to be located in high or extremely high water stress areas [3].

The collaboration between Amkor and TSMC is part of a broader effort to secure the U.S. semiconductor supply chain. In recent months, TSMC has faced challenges with the unauthorized sharing of its trade secrets, with former employees facing up to 14 years in jail for violating Taiwan's national security laws [2]. Despite these challenges, the industry continues to invest in advanced manufacturing and water management solutions to meet the growing demand for semiconductors.

References:

[1] https://www.morningstar.com/news/business-wire/20250828146023/amkor-announces-new-site-for-us-semiconductor-advanced-packaging-and-test-facility

[2] https://wccftech.com/tsmcs-high-end-2nm-manufacturing-technology-leak-sees-perpetrators-face-up-to-14-years-in-jail/

[3] https://www.asiabusinessoutlook.com/news/tsmc-builds-arizona-water-recycling-plant-for-chip-fab-nwid-9643.html