Arizona’s chip hub expands as Amkor shifts its facility to a larger site, promising jobs, an Apple partnership, and US semiconductor strength by 2028.
Amkor Technology is shifting its planned $2 billion semiconductor packaging and test plant to a larger site in north Peoria, Arizona. The move follows approval of a land swap by the local city council and comes after delays and opposition from nearby residents. Construction is expected to begin within days, with production slated for early 2028.
According to a report by the Manufacturing Dive, the new 104-acre (approximately 42.09 hectares) site will form part of the Peoria Innovation Core, a technology hub now under development. The relocation marks a major expansion from the project’s original footprint of 56 acres (almost 22.66 hectares) at Vistancia’s Five North mixed-use community, where residents raised concerns over health and environmental impacts.
Peoria city council recently secured 834 acres (almost 337.51 hectares) of Arizona Trust Land in a $46.7 million bid, paving the way for the project. As per reports, the new location offers more space and is further from schools and residential areas.
Amkor’s facility is backed by up to $407 million in federal funding under the CHIPS and Science Act. The company says the site will create more than 2000 jobs, bolstering the region’s growing semiconductor industry. Chief executive Giel Rutten described the new site as providing ‘flexibility to meet rising customer demand’ while strengthening the firm’s commitment to US chip production.
Meanwhile, the project has strong industry links. Amkor will handle packaging and testing for Apple, its first and largest customer at the site. Chips produced at TSMC’s Arizona fabs are expected to flow directly into Amkor’s facility for assembly and testing.
Despite earlier delays, Amkor says its overall strategy remains intact. On a recent earnings call, Rutten confirmed ongoing collaboration with foundry partners and highlighted progress in aligning roadmaps with customer needs.
The company reported quarterly revenue of $1.5 billion, a 3% rise year-on-year, though net income slipped 19% to $54.4 million.
