Amkor Announces US Advanced Packaging and Test Facility

Amkor Technology, Inc. (Nasdaq: AMKR), a leading provider of semiconductor packaging and test services, has announced its plan to build an advanced packaging and test facility in Peoria, Arizona. By the time of full project completion, Amkor projects to invest approximately $2 billion and employ approximately 2,000 people at the new facility.

Amkor is the only US-headquartered OSAT (outsourced semiconductor assembly and test) service provider with advanced packaging technology capability and high-volume manufacturing experience. Upon completion, this will be the largest outsourced advanced packaging facility in the US.

"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," said Giel Rutten, Amkor’s president and chief executive officer. “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.”

In recent Congressional testimony, Commerce Secretary Gina M. Raimondo highlighted advanced packaging as a major area of focus for the US government’s effort to rebuild American semiconductor manufacturing. The Commerce Department made clear that developing robust advanced manufacturing capacity and capability is a key priority and essential to the success of the CHIPS program.

Amkor has secured approximately 55 acres of land with intent to build a state-of-the-art manufacturing campus with more than 500,000 square feet of clean room space. The first phase of the manufacturing plant is targeted to be ready for production within the next two to three years. Amkor plans to provide high volume, leading-edge technologies for advanced packaging and testing of semiconductors to support critical markets such as high-performance computing, automotive, and communications.

Amkor worked closely with Apple on the strategic vision and initial manufacturing capability of the Peoria facility, which will package and test chips produced for Apple at the nearby TSMC fab. When the new facility opens, Apple will be its first and largest customer.

Amkor first established its presence in the Greater Phoenix area in 1984 and is excited to expand its footprint in the evolving Arizona semiconductor industry. The new manufacturing location will uniquely position Amkor among a strong ecosystem of front-end fabs, IDMs, and suppliers with current or expanding presence in the area, including TSMC, Intel, Applied Materials, ASML and others.