Dive Brief:
- Chipmaker Amkor Technologies is relocating its planned $2 billion semiconductor advanced packaging and test facility to a larger site in north Peoria, Arizona.
- The facility will be built on a 104-acre site at the Peoria Innovation Core, a technology hub in development, following Amkor’s recent approval for an amended land swap from the city.
- Peoria city council last week made a successful $46.7 million bid for 834.5 acres of Arizona Trust Land to jump-start the tech hub. Amkor said construction will begin at the new site in the coming days, with production expected by early 2028.
Dive Insight:
Amkor’s outsourced packaging plant has been in the works for years. It received up to $407 million in direct funding from the CHIPS and Science Act last year to support the $2 billion investment and creation of more than 2,000 jobs for the Peoria area.
The project was originally slated for a 56-acre parcel within the Five North mixed-use development at Vistancia, but changed course after facing pushback from nearby residents who raised environmental and health concerns. Prior to the land swap, Amkor posted webinars in an effort to get the community on board with the project.
Ultimately, the company relocated as market demands and increased project scope necessitated a larger site, according to a news release from the city of Peoria. The new site is also located farther away from local schools, businesses and residents.
“This new site offers the flexibility to meet growing customer demand and reinforces our commitment to U.S.-based chip manufacturing,” Amkor CEO Giel Rutten said in a statement last week.
Amkor collaborated with Apple on the project, which is expected to package and test chips produced for the iPhone maker at a nearby Taiwan Semiconductor Manufacturing Co. fabrication facility. In 2023, Amkor said Apple will be its first and largest customer when the factory opens.
In a July 28 earnings call, Rutten updated investors on the project, saying Amkor’s approach has not changed and it considers TSMC to be “a very important partner.”
Amkor generated revenue of $1.5 billion in its latest quarter, up 3% from a year ago. It also posted net income of $54.4 million for the period, down 19% over last year.
“We’re working with customers as well as with foundry partners to align on our road map, and we are making good progress there,” Rutten said.
