With boosted investment, Amkor breaks ground on $7B facility

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With shovels within the grime, Tempe, Arizona-based semiconductor agency Amkor broke ground on a large, $7 billion outsourced semiconductor superior packaging and take a look at campus in Peoria, Arizona, in keeping with a Monday information launch.

Initially, the ability was to be located at a 56-acre parcel inside the 5 North mixed-use improvement at Vistancia, additionally positioned in Peoria. Now, the ability will likely be positioned on a 104-acre website at a tech hub often known as the Peoria Innovation Core because of the bigger undertaking scope.

The funding is $5 billion greater than Amkor’s prior dedication of $2 billion for the ability and likewise concerned a land parcel swap. The expanded spending contains extra cleanroom area and a second greenfield packaging and take a look at facility, which will increase the inflow of money to $7 billion complete throughout two phases, in keeping with Amkor.

As soon as each phases are full, the campus will provide over 750,000 sq. ft of cleanroom area, and can help prospects reminiscent of Apple and Nvidia, in keeping with the information launch. 

Funding for the undertaking comes from state and native governments, alongside the Superior Manufacturing Funding Tax Credit score and approximately $407 million from the CHIPS Act, in keeping with an Amkor 10-Q filed for the second quarter of 2025. 

The Amkor funding is one more in a protracted record of semiconductor projects across Arizona, together with fabs from Taiwan Semiconductor Manufacturing Co. and Nvidia.

The groundbreaking comes because the U.S. is striving to scale back its reliance on overseas semiconductors. In August, President Donald Trump introduced his intention to apply 100% tariffs for semiconductor imports. Final 12 months, the U.S. imported $22.6 billion of semiconductors, in keeping with the Observatory of Financial Complexity analytics hub. Of that complete, greater than $5.6 billion in imports originated in Vietnam. Thailand and Malaysia every exported greater than $3 billion price of chips to the U.S. 

“Arizona presents the right combination of expertise, infrastructure, and business presence, and we’re proud to deepen our roots right here,” stated Giel Rutten, Amkor’s president and CEO, within the information launch.

Building of the primary manufacturing facility on the campus is predicted to be accomplished in mid-2027, per the discharge, with manufacturing starting in early 2028.