Amkor Technology has broken ground on its new advanced semiconductor packaging and test campus in Arizona, expanding its total planned investment to $7 billion. The expansion adds a second greenfield facility and additional cleanroom space, marking a significant milestone for domestic chip manufacturing. When completed, the two-phase project will comprise over 750,000 square feet of cleanroom space and employ up to 3,000 people.
The campus will be the first high-volume outsourced advanced packaging facility in the United States, designed to complement TSMC’s wafer fabrication operations in nearby Phoenix. It will serve major customers including Apple and NVIDIA, integrating smart factory technologies and scalable production for AI, high-performance computing, mobile, and automotive chips. Construction of the first phase is set to finish in mid-2027, with production ramping in early 2028. The project is backed by federal incentives under the CHIPS for America Program, the Advanced Manufacturing Investment Tax Credit, and state and local support.
“This groundbreaking represents a bold step in Amkor’s long-term strategy for growth and innovation,” said Giel Rutten, president and CEO of Amkor Technology. “We’re building a facility to meet our customers’ most advanced needs that will help shape the future of semiconductor manufacturing in the United States.”
🌐 Analysis: Arizona has become one of the most concentrated semiconductor hubs in the U.S., with major investments across the full manufacturing chain:
TSMC Arizona – $65 billion investment for two fabs in north Phoenix producing 3nm and 2nm chips by 2028.Intel – More than $32 billion expansion of its Ocotillo campus in Chandler, including Fab 52 and Fab 62 for advanced process nodes and packaging.Amkor Technology – $7 billion for two phases of outsourced advanced packaging and test facilities in Tempe/Peoria.Edwards Vacuum – $600 million semiconductor manufacturing component plant supporting TSMC supply chain in Chandler.Applied Materials – $2 billion Equipment and Process Innovation and Collaboration Center (EPIC) in Silicon Desert corridor.NXP Semiconductors – $290 million investment to expand RF and automotive chip capacity in Chandler.Micron Technology – Evaluating a potential Arizona site for DRAM packaging and assembly operations (unconfirmed).Lucid Motors and Onsemi – Expanding semiconductor and power electronics manufacturing in Casa Grande and East Phoenix for EV applications.
Together, these projects represent well over $100 billion in cumulative semiconductor-related investment across Arizona, positioning the state as the epicenter of U.S. chip fabrication, advanced packaging, and materials innovation.
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