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Another semiconductor company invests $2 billion into Arizona

Cameron Arcand

(The Center Square) – Amkor Technology is pouring roughly $2 billion into a packaging and test facility in Peoria, Arizona, which marks another major development for the semiconductor industry in the state.

Once construction is finished on the planned 500,000 square feet – larger than eight football fields – facility, it's expected to create 2,000 jobs.

"Expansion of a US semiconductor supply chain is underway, and as the largest US-headquartered advanced packaging company, we are excited to lead the charge in bolstering America’s advanced packaging capabilities," Giel Rutten, Amkor’s president and chief executive officer, said in a news release on Thursday.

“Semiconductor companies, foundries, and other supply chain partners understand the need to strategically broaden their geographic footprint. The announcement of our new advanced packaging and test facility in Arizona is a clear signal of our intent to help our customers ensure resilient supply chains and be a part of a strong American semiconductor ecosystem," Rutten continued.

According to the news release, Amkor is the only "outsourced semiconductor assembly and test" company based in the United States, as it has its corporate headquarters in Tempe.

The company credited the $52.7 billion CHIPS and Science Act to helping with the development of a new Peoria campus, calling the federal funding "critical."

Most chips are made in Taiwan, but the United States is trying to bring more manufacturing for the key piece to many devices to protect themselves in the case of hostile action from China either against Taiwan or the U.S. 

Sen. Mark Kelly said the decision will "protect our national security."

“As one of the first advanced packaging facilities in the US, this is a huge step forward to reducing dependence on other countries in the microchip supply chain," he said in the release.

Apple also praised the new Peoria plan, as they work closely with Amkor.

"Apple is committed to help build a new era of advanced manufacturing, right here in the US,” Jeff Williams, Apple chief operating officer, said in the news release. “Apple and Amkor have worked together for more than a decade packaging chips used extensively in all Apple products, and we are thrilled that this partnership will now deliver the largest OSAT advanced packaging facility in the United States.”

Another semiconductor company, the Taiwan Semiconductor Manufacturing Company, is building a chip plant in Peoria as well. However, concerns about talent have loomed over the plant, and it's opening has been pushed back to 2025.