Amkor sees $600m support for $2bn US packaging plant
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Amkor Technology has signed the first stage of $400m direct funding for a packaging and test plant in Arizona under the US CHIPS Act.
Amkor announced its plans back in November to build its first domestic OSAT (outsourced semiconductor assembly and test) facility in Peoria, Arizona, with Apple and TSMC as lead customers. It plans to spend $2bn on the plant, which will be the largest outsourced advanced packaging and test facility in the US and employ up to 2000 people.
The deal with the US government would also include access to $200m in proposed loans
The packaging and test facility in Arizona allows Amkor to leverage its status as a strategic manufacturing partner for semiconductor companies, foundries, and OEMs.
Amkor has secured approximately 55 acres with intent to build the manufacturing campus with more than 500,000 square feet of clean room space. The first phase of the manufacturing facility is targeted to be ready for production within three years.
Amkor and TSMC have been working closely to provide high volume, leading-edge technologies for advanced packaging and testing of semiconductors to support critical markets such as high-performance computing, automotive, and communications.
Amkor first established its presence in the Greater Phoenix area in 1984 and is excited to expand its footprint in the evolving Arizona semiconductor industry.
“Amkor is proud to be the leading advanced packaging and test OSAT headquartered in the US, and today’s announcement underscores our commitment to grow America’s domestic semiconductor ecosystem,” said Giel Rutten, Amkor’s president and chief executive officer.
“Amkor’s Arizona facility will enable us to support the growing semiconductor manufacturing community—while creating 2,000 good jobs—and we look forward to providing our customers with domestic advanced packaging and test capabilities. Advanced packaging is an essential component of semiconductor innovation and manufacturing, and we appreciate our partners at the Department of Commerce for recognizing the importance of this sector as they work to support our industry.”
“One of the fundamental goals of the CHIPS and Science Act is creating an advanced packaging ecosystem in the U.S. to ensure full start to finish chip production occurs domestically. Advanced packaging drives chip innovation at all levels, and because of President Biden’s leadership, the U.S. will have a robust domestic footprint in this critical technology,” said Secretary of Commerce Gina Raimondo.
“The leading-edge chips that will be packaged right here in Arizona are foundational to technologies of the future that will define global economic and national security for decades to come. Thanks to the Biden-Harris Administration, and Amkor’s investments in the U.S., this proposed funding would enhance our supply chain security, create thousands of jobs in Arizona, and further position the United States to out-innovate, out-build, and out-compete the rest of the world.”
“Today’s announcement underscores Arizona’s position as the semiconductor hub of the US and among the world’s most advanced manufacturing ecosystems. Amkor’s Arizona expansion represents the most significant advanced packaging facility in the United States, reshoring a critical part of the semiconductor supply chain back to North America,” said Arizona Governor Katie Hobbs
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