Amkor relocates $2B semiconductor facility to larger Arizona site

Dive Transient:

• Chipmaker Amkor Applied sciences is relocating its planned $2 billion semiconductor advanced packaging and test facility to a bigger website in north Peoria, Arizona.
• The ability shall be constructed on a 104-acre website on the Peoria Innovation Core, a know-how hub in growth, following Amkor’s current approval for an amended land swap from the town.
• Peoria metropolis council final week made a profitable $46.7 million bid for 834.5 acres of Arizona Belief Land to jump-start the tech hub. Amkor mentioned development will start on the new website within the coming days, with manufacturing anticipated by early 2028.

Dive Perception:

Amkor’s outsourced packaging plant has been within the works for years. It obtained as much as $407 million in direct funding from the CHIPS and Science Act final yr to support the $2 billion investment and creation of greater than 2,000 jobs for the Peoria space.

The undertaking was initially slated for a 56-acre parcel throughout the 5 North mixed-use growth at Vistancia, however modified course after facing pushback from nearby residents who raised environmental and well being considerations. Previous to the land swap, Amkor posted webinars in an effort to get the neighborhood on board with the undertaking. 

Finally, the corporate relocated as market demands and increased project scope necessitated a bigger website, in keeping with a information launch from the town of Peoria. The brand new website can also be situated farther away from native faculties, companies and residents.

“This new website presents the flexibleness to satisfy rising buyer demand and reinforces our dedication to U.S.-based chip manufacturing,” Amkor CEO Giel Rutten mentioned in an announcement final week.

Amkor collaborated with Apple on the project, which is predicted to package deal and check chips produced for the iPhone maker at a close-by Taiwan Semiconductor Manufacturing Co. fabrication facility. In 2023, Amkor mentioned Apple shall be its first and largest buyer when the manufacturing unit opens.

In a July 28 earnings name, Rutten up to date traders on the undertaking, saying Amkor’s method has not modified and it considers TSMC to be “an important accomplice.”

Amkor generated revenue of $1.5 billion in its newest quarter, up 3% from a yr in the past. It additionally posted web earnings of $54.4 million for the interval, down 19% over final yr.

“We’re working with prospects in addition to with foundry companions to align on our street map, and we’re making good progress there,” Rutten mentioned.