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Amkor Technology has officially broken ground on its new outsourced semiconductor assembly and test (OSAT) plant in Peoria, Arizona, marking a major milestone in U.S. semiconductor manufacturing expansion. The facility represents a potential $7 billion investment that will create thousands of jobs and strengthen the domestic semiconductor supply chain, supported by significant funding from the CHIPS and Science Act.
Amkor’s Arizona OSAT Facility Specifications
The new campus will comprise multiple buildings with state-of-the-art infrastructure, including 750,000 square feet (69,677 square meters) of cleanroom space. The first factory is expected to be completed by mid-2027, with production slated to begin in early 2028. This massive facility positions Amkor Technology as a key player in advanced packaging and testing services, addressing growing demand for chip packaging solutions in North America.
Investment and Job Creation at the Peoria Campus
While initially planned as a $2 billion project, recent reports indicate Amkor’s total investment in the Peoria, Arizona campus could reach $7 billion. This expansion is projected to create approximately 3,000 jobs at the site, with the company committing to partnerships with educational institutions to develop local talent pipelines. The substantial funding boost reflects growing confidence in U.S. semiconductor manufacturing capabilities, according to recent analysis of industry trends.
Strategic Partnerships with Industry Leaders
Amkor has secured several high-profile partnerships for its Arizona facility:
- TSMC Collaboration: In October 2024, Amkor signed a Memorandum of Understanding with TSMC to provide turnkey advanced packaging and test services
- Nvidia as Lead Customer: The graphics chip giant will be a primary client for the new OSAT plant
- Apple Silicon Packaging: A November 2023 deal confirmed Amkor will package Apple Silicon chips produced at TSMC’s nearby Phoenix fab
These partnerships demonstrate the strategic importance of Amkor’s expanded manufacturing capabilities in the global semiconductor ecosystem.
Impact on U.S. Semiconductor Manufacturing
The Peoria OSAT plant represents a significant step in reshoring critical semiconductor packaging capabilities to the United States. With advanced packaging becoming increasingly crucial for performance and efficiency, this facility will help reduce dependence on overseas suppliers. Industry experts note that this expansion aligns with broader trends in technology manufacturing, as seen in related analysis of industrial investment decisions and major corporate investments in strategic sectors.
Broader Implications for Technology Supply Chains
Amkor’s Arizona facility arrives amid significant shifts in global technology manufacturing. The substantial CHIPS Act funding supporting this project highlights the government’s commitment to strengthening domestic semiconductor capabilities. This development complements other technology sector advancements, including the mainstream adoption of USB-C peripherals in consumer electronics and innovations in portable gaming emulation devices, reflecting the interconnected nature of modern technology ecosystems.
The groundbreaking of Amkor’s OSAT plant in Peoria establishes Arizona as a growing hub for semiconductor manufacturing, with the facility expected to play a crucial role in supporting next-generation technologies from leading chip designers and manufacturers across the industry.
