Amkor Technology to Construct New Semiconductor Facility in Arizona.

Amkor Technology Inc. has announced revised plans for a new semiconductor facility in Arizona. The facility, which will be located on a 104-acre site in Peoria, will focus on advanced packaging and testing for industries such as computing, communications, and automotive. Construction is expected to begin soon, with production starting in early 2028. Amkor will work with TSMC and other major semiconductor firms as part of Arizona's growing semiconductor ecosystem.

Amkor Technology Inc. (NASDAQ: AMKR), a leading provider of semiconductor packaging and test services, has announced revised plans for its 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. The 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 is expected to begin within days, with production anticipated to commence in early 2028 [4].

The new site offers Amkor the flexibility to meet growing customer demand and reinforces its commitment to U.S.-based chip manufacturing. "As the largest advanced packaging company in the U.S., Amkor is proud to invest in US semiconductor manufacturing and strengthen the US semiconductor supply chain," said Giel Rutten, Amkor’s president and chief executive officer [4].

Amkor’s new facility will focus on advanced packaging and testing for industries such as computing, communications, and automotive. The company will collaborate with TSMC and other key semiconductor firms as part of Arizona's growing semiconductor ecosystem. This strategic move aligns with the broader trend of onshoring semiconductor manufacturing to mitigate supply chain disruptions and geopolitical risks [2].

The investment in Arizona is part of a broader trend of semiconductor companies diversifying their manufacturing locations to enhance resilience and reduce dependency on a single region. TSMC, for instance, has allocated $500 million to low-risk bonds to fund its $165 billion U.S. expansion while avoiding equity market volatility. This strategy contrasts with Intel’s leveraged $100 billion+ expansion, which relies heavily on government equity stake [3].

Amkor’s decision to establish a new facility in Arizona is also driven by the growing demand for AI and high-performance computing (HPC) infrastructure. The region’s robust semiconductor ecosystem is well-positioned to meet this demand, with TSMC and other major players investing in the area. Amkor’s collaboration with these firms will facilitate the delivery of advanced, high-volume manufacturing solutions [1].

The Peoria City Council’s approval of the land swap and development agreement signals a strong partnership between the City of Peoria and Amkor. This partnership will bring a $2 billion investment and 2,000 new jobs to the community, further solidifying Peoria’s role in strengthening America’s critical semiconductor supply chain [4].

References:
[1] https://www.marketscreener.com/news/amkor-technology-changes-location-of-arizona-semiconductor-packaging-facility-ce7c50dcd180f622
[2] https://www.ainvest.com/news/tsmc-strategic-fixed-income-moves-portfolio-diversification-blueprint-prudent-financial-management-volatile-semiconductor-market-2509/
[3] https://amkor.com/blog/amkor-announces-new-site-for-u-s-semiconductor-facility/
[4] https://finance.yahoo.com/news/amkor-technology-unveils-revised-plans-045745173.html