Benzinga and Yahoo Finance LLC may earn commission or revenue on some products through the links below.
The CHIPS and SCIENCE Act has provided funding for several large semiconductor facilities in Arizona, including Taiwan Semiconductor (NYSE:TSM), which is investing $40 billion in multiple semiconductor fabs in the Phoenix area, and Intel (NASDAQ:INTC), which is investing $8.5 billion in Arizona, New Mexico, Ohio and Oregon. Another smaller semiconductor company is the latest to receive CHIPS Act funding.
TRENDING: Get monthly cash flow from Sunbelt real estate for just $10. Join the next big real estate boom today.
This is a paid advertisement. Before investing, carefully consider Fundrise Flagship Fund’s investment objectives, risks, charges and expenses. This and other information is contained in the fund’s prospectus. Please read the prospectus carefully before investing.
Amkor Technology, headquartered in Tempe, Arizona, is planning a new factory in Peoria, Arizona. Amkor is an OSAT (outsourced assembly and test) service provider. OSAT companies play a key role in the semiconductor supply chain, focusing on the back-end processes of chip manufacturing. Amkor’s planned facility would be the largest OSAT facility in the United States. The project proposal includes access to up to $400 million in direct financing and $200 million in loans. The Semiconductor Industry Association has supported the deal, saying it would strengthen the company’s advanced packaging operations, a key component of the chip manufacturing process. In Amkor’s latest earnings call, CEO Gjeld Rutten said the factory, once operational, would account for less than 10% of the company’s total production and would utilize technology similar to that used in its South Korean facility.
The project was first announced and approved by the city last year. Amcor plans to spend approximately $2 billion to bring the project to full capacity. The project is expected to employ approximately 2,000 people. The 55-acre site will have more than 500,000 square feet of clean room space. Public infrastructure associated with the project will be located within Five North at Vistancia, a 320-acre mixed-use lifestyle and employment development.
The CHIPS Act, enacted in 2022, allocated about $30 billion of a $52 billion investment to building the U.S. semiconductor industry. While Intel and Taiwan Semiconductor have faced challenges getting their facilities up and running, the impact of these planned factories is already being felt in the Phoenix area.
do not miss it:
New Semiconductor Hub
Phoenix is aiming to become one of the core US locations for semiconductor companies, and where there are high-paying jobs, there is often high-priced real estate. With an estimated 50,000 jobs expected from Taiwan Semiconductor alone, there is a push to build high-quality housing both for rent and for sale. Major homebuilder Lennar (NYSE:LEN) plans to develop more than 700 homes near the Taiwan Semiconductor factory.
For the Phoenix region, the ongoing expansion has been a mixed blessing: It’s good for local businesses and a magnet for real estate developers looking to turn the desert into new residential communities, but some residents worry about the rapid growth. One resident told Marketplace that new construction “is actually threatening my way of life.”
The Amcor plant is a relatively small project compared to other plants, but its location in Peoria, a relatively small city of about 200,000 people, could have a big impact. In Peoria, where Amcor’s new plant will be located, the average sales price of a home is $533,750, suggesting that home prices are rising. The city has time to plan: Construction on the first phase won’t be completed until 2027, and the entire project won’t be completed until 2034.
Are you missing out on higher yields?
The current high interest rate environment is creating an excellent opportunity for income-seeking investors to earn huge yields, and not just through dividend stocks… Certain private market real estate investments offer individual investors the opportunity to take advantage of these high-yield opportunities, and Benzinga has identified some of the most attractive options to consider.
For example, an investment platform backed by Jeff Bezos just launched a private credit fund. The fund offers access to a pool of short-term loans secured by residential real estate and targets investors a 7-9% net annual yield per month. The best part is that, unlike other private credit funds, the minimum investment for this fund is just $100.
Don’t miss out on this opportunity to take advantage of high-yield investments while interest rates are high. Check out Benzinga’s favorite high-yield products.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
This article, “Arizona Gets Hotter as New Semiconductor Company Signs Big Deal” originally appeared on Benzinga.com.
