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Amkor Technology, Inc. (Arizona)
Key Facts
Project Summary
The U.S. Department of Commerce awarded Amkor Technology Arizona, Inc., a subsidiary of Amkor Technology, Inc., up to $407 million in direct funding to support the construction of a new advanced packaging and test facility. Upon completion, the facility is expected to produce approximately 14,500 wafers per month and 3,700,000 units per month processed through its assembly and test equipment in Peoria, Arizona.
Economic and National Security Impact
The Department’s investment in Amkor, the largest U.S.-based outsourced semiconductor assembly and test company (OSAT), will strengthen resilience in key advanced packaging technologies, which will advance U.S. economic and national security by ensuring a reliable domestic advanced packaging ecosystem, supporting leading-edge clusters, and helping meet the growing demand for AI chips.
Developing an advanced packaging ecosystem is necessary to sustain U.S. global competitiveness and achieve supply chain security and resilience, and Amkor is regarded as one of the global leaders in advanced packaging technology.
Amkor’s advanced packaging and test facility in Arizona is expected to utilize the most advanced technology such as 2.5D technology and other next generation technologies. The company’s 2.5D technology is foundational for AI and high-performance computing applications as it is the final step in the manufacturing of graphic processing units (“GPUs”) and other AI chips. A lack of 2.5D technology capacity has been a significant chokepoint in the semiconductor industry’s ability to meet the rapidly increasing demand for generative AI products and services.
As a result of the direct CHIPS funding, the U.S. will significantly expand domestic capacity for this critical piece of the semiconductor supply chain, further strengthening U.S. technology leadership.
Amkor Technology Project Overview | ||
|---|---|---|
Project Summary | Recipient | Amkor Technology Arizona, Inc. |
| Location(s) | Peoria, Arizona | |
Financial Summary | Program | CHIPS Program Office |
| Direct Funding Amount | Up to $407 million | |
| Expected Capital Expenditure | $1.7 billion | |
Workforce Summary | Estimated Job Creation | 2,000 manufacturing jobs At peak of construction, more than 2,000 construction jobs |
| CHIPS Workforce Funding | $7 million | |
Project Statistics: Peoria, Arizona | ||
|---|---|---|
Summary | Project Type | Construction of a new manufacturing facility for advanced production lines to interconnect, protect and test integrated circuits |
| Technologies | 2.5D technology and other next generation technologies | |
| Project Timeline | Mass production expected to begin at the end of 2027 | |