Amkor relocates $2B semiconductor facility to larger Arizona site

Dive Temporary:

• Chipmaker Amkor Applied sciences is relocating its planned $2 billion semiconductor advanced packaging and test facility to a bigger web site in north Peoria, Arizona.
• The power can be constructed on a 104-acre web site on the Peoria Innovation Core, a know-how hub in improvement, following Amkor’s current approval for an amended land swap from 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 stated development will start on the new web site 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 12 months to support the $2 billion investment and creation of greater than 2,000 jobs for the Peoria space.

The venture was initially slated for a 56-acre parcel inside the 5 North mixed-use improvement 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 venture. 

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

“This new web site gives the flexibleness to fulfill rising buyer demand and reinforces our dedication to U.S.-based chip manufacturing,” Amkor CEO Giel Rutten stated in an announcement final week.

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

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

Amkor generated revenue of $1.5 billion in its newest quarter, up 3% from a 12 months in the past. It additionally posted web revenue of $54.4 million for the interval, down 19% over final 12 months.

“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 stated.