Amkor Technology Inc. has started construction on its Arizona advanced packaging and testing facility.
As part of the company’s $7 billion investment, the campus will offer more than 750,000 sq ft of cleanroom space and as many as 3,000 jobs. Construction of the facility is expected to be completed by mid-2027. Production will then follow in early 2028.
In July of 2024, Amkor was set to receive $400 million direct funding from the Biden Administration’s CHIPS and Science Act. At the time, the funding would be used along with Amkor’s own $2 billion to build the packaging and testing facility in Arizona.
The deal was designed to help the U.S. to significantly expand domestic capacity for semiconductor manufacturing and assembly technologies. Something the Trump Administration has continued to build upon in 2025.
The goal is to be less dependent upon foreign chip manufacturers to create a more resilient supply chain in case of a geopolitical event or another pandemic such as when COVID-19 crippled parts of the electronics supply chain due to lockdowns.
The facility
The facility will be in Arizona’s high-tech corridor and will house what Amkor claims to be the most sophisticated outsourced semiconductor packaging and test facilities in the U.S. It will include smart factory technologies and scalable production lines for sectors like:
- AI
- High performance computing
- Mobile communications
- Automotive
Additionally, the campus will complement Taiwan Semiconductor Manufacturing Co.’s (TSMC's) front-end wafer fabrication, also in Arizona, for end-to-end chip manufacturing. Amkor and TSMC signed an agreement in October of 2024 to support TSMC’s customers’ designs, particularly those at its fabs in Phoenix, Arizona.
The proximity of TSMC’s front-end fab and Amkor’s back-end facility will help accelerate overall product cycle times, the companies said.
Amkor will also support customers like Apple and Nvidia with their back-end needs, the company said.
