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

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With shovels within the dust, Tempe, Arizona-based semiconductor agency Amkor broke ground on a large, $7 billion outsourced semiconductor superior packaging and check campus in Peoria, Arizona, based on a Monday information launch.

Initially, the ability was to be located at a 56-acre parcel throughout the 5 North mixed-use improvement at Vistancia, additionally positioned in Peoria. Now, the ability will likely be positioned on a 104-acre web site at a tech hub referred to 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 consists of extra cleanroom area and a second greenfield packaging and check facility, which will increase the inflow of money to $7 billion whole throughout two phases, based on Amkor.

As soon as each phases are full, the campus will provide over 750,000 sq. toes of cleanroom area, and can help clients resembling Apple and Nvidia, based on 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, based on an Amkor 10-Q filed for the second quarter of 2025. 

The Amkor funding is yet one more in a protracted checklist 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 cut back its reliance on overseas semiconductors. In August, President Donald Trump introduced his intention to apply 100% tariffs for semiconductor imports. Final yr, the U.S. imported $22.6 billion of semiconductors, based on the Observatory of Financial Complexity analytics hub. Of that whole, greater than $5.6 billion in imports originated in Vietnam. Thailand and Malaysia every exported greater than $3 billion value of chips to the U.S. 

“Arizona gives the correct mix of expertise, infrastructure, and trade presence, and we’re proud to deepen our roots right here,” mentioned Giel Rutten, Amkor’s president and CEO, within the information launch.

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