Amkor starts construction on Peoria, Arizona packaging site, expected to start production in 2028

Amkor Technology, a major American packaging and testing company, announced that it has officially started construction of a new factory in Peoria, Arizona, with an initial investment of US$2 billion and a US$400 million subsidy approved by the US Department of Commerce in accordance with the CHIPS Act. The plant is expected to be completed in mid-2027 and start production in early 2028.

According to foreign media reports, Amkor has secured Apple and NVIDIA as its first cooperative customers and will be responsible for packaging Apple Silicon chips. These chips will be produced at the nearby TSMC Arizona plant. The Arizona state government estimates that the final investment scale of the Amkor campus may reach US$7 billion, bringing about 3,000 jobs and becoming the largest advanced packaging base in the United States.

Amkor’s new factory is located near many semiconductor centers, including TSMC and Intel. TSMC's three Arizona wafer fabs are expected to be put into production by 2027, introducing 2-nanometer and angstrom-level A16 processes; Intel is also building two new fabs in Chandler and expanding its Foveros advanced packaging production line in New Mexico. The U.S. Department of Commerce pointed out that with the opening of TSMC's production capacity, there is an urgent need in the country for packaging partners with high-density integration capabilities. The establishment of Amkor's factory will fill the gap in the supply chain, but it also faces potential competition from many Taiwanese manufacturers evaluating to set up factories in the United States.

With the rapid popularity of AI accelerators, HBM memory and multi-die architectures, packaging has become a key link in chip manufacturing. The National Institute of Standards and Technology (NIST) pointed out that the supply shortage of 2.5D packaging has become one of the main bottlenecks in the mass production of AI chips, leading to delays in the shipment of many GPUs.

Amkor stated that the new Arizona campus will focus on high-density integration and high-frequency interconnect packaging technology, support the local production of AI and high-performance computing (HPC) chips, and cooperate with local universities and vocational training institutions to cultivate professional talents. The plan is seen as an important milestone in Amkor's return to U.S. manufacturing and a key step in rebuilding the U.S. chip supply chain.

Amkor breaks ground on Arizona advanced packaging campus, plugging critical gap in US semiconductor supply chain — production expected in 2028, investment could extend to $7 billion with 3,000 jobs in town