The U.S. Department of Commerce has awarded Amkor Technology Arizona, Inc. up to $407 million under the CHIPS Incentives Program to establish a state-of-the-art semiconductor packaging and testing facility in Peoria, Arizona. This project, part of a broader $2 billion investment by Amkor, will significantly enhance domestic supply chain resilience for advanced technologies such as artificial intelligence and high-performance computing. The new facility is expected to create over 4,000 jobs—2,000 in manufacturing and 2,000 during construction—boosting Arizona’s economic landscape. The grant aligns with the CHIPS and Science Act’s goal to strengthen U.S. leadership in semiconductor innovation and production.
Key highlights of the announcement include:
• Significant Investment: Amkor’s $2 billion project includes a cutting-edge facility for advanced packaging and testing.
• Job Creation: The initiative will generate more than 4,000 jobs in construction and manufacturing.
• Boost to AI and HPC: The facility will support AI and high-performance computing technologies by enabling onshore packaging of advanced semiconductors.
• Supply Chain Resilience: The move eliminates the need to send chips overseas for packaging, enhancing domestic capabilities.
• Performance Tracking: Funds will be disbursed upon reaching key project milestones, with rigorous tracking in place.
“This investment will solidify America’s leadership in semiconductor technology and secure critical supply chain capabilities,” said U.S. Secretary of Commerce Gina Raimondo. Amkor President and CEO Giel Rutten hailed the partnership, emphasizing its importance in establishing a robust U.S.-based semiconductor supply chain. For additional details, visit the CHIPS for America website.
