Amkor Breaks Ground on $7 Billion Advanced Packaging Campus in Arizona

The News
Amkor Technology (Nasdaq: AMKR) officially broke ground on a new, large-scale advanced semiconductor packaging and test campus in Peoria, Arizona, expanding its planned investment to $7 billion across two phases.

The project marks the first U.S.-based high‑volume advanced packaging facility, a critical back‑end component in semiconductor manufacturing previously dominated by overseas operations. 

Amkor says the campus will encompass over 750,000 square feet of clean‑room space and will support up to 3,000 skilled jobs when fully operational.

The first manufacturing facility is expected to be completed by mid‑2027, with initial production beginning in early 2028.

Partnerships & Support
Amkor’s Arizona campus is supported by federal, state, and local incentives, including the CHIPS for America program and the Advanced Manufacturing Investment Tax Credit.

Key customers already lined up include Apple and NVIDIA, which will use the facility to package and test chips – especially those fabricated nearby at TSMC’s Arizona fabs.
In particular, Apple has pledged strong support, citing the facility will help create an end‑to‑end silicon supply chain in the U.S.
TSMC and Amkor have also collaborated via a memorandum of understanding to bring advanced packaging and testing services to the same region, enabling tighter integration between wafer fabrication and back-end package/test operations.

Why It Matters

• Closing a critical gap in U.S. semiconductor supply chain. Up until now, many advanced packaging and test operations have been concentrated in Asia (Taiwan, Korea, etc.). This facility helps reduce reliance on foreign back-end services, shortening supply chains and mitigating risk.

• Enabling “fab-to-package” integration. With TSMC operating fabs in Arizona, having a nearby packaging and test facility improves cycle times, reduces logistics cost, and enhances yield.

• Strategic national and industrial policy alignment. The investment dovetails with U.S. government efforts (via the CHIPS Act) to strengthen domestic semiconductor capabilities and reduce dependence on foreign partners.

• Jobs, economic development, and talent ecosystem. The project is expected to generate thousands of high‑tech jobs and stimulate the broader semiconductor ecosystem in Arizona, including suppliers, research institutions, and workforce training.