Amkor Technology Corp. is pursuing plans with the support of the U.S. Department of Commerce to build a $2 billion advanced semiconductor packaging manufacturing facility in Peoria, Arizona.
The Tempe, Arizona-based technology manufacturer announced plans last fall for an outsourced semiconductor assembly and test (OSAT) facility that it said would be its first OSAT in the U.S. and the largest OSAT ever built in the country.
The Commerce Department said last month it had reached non-binding tentative terms to provide Amkor with $400 million in direct funding and up to $200 million in loans under the CHIPS and Science Act of 2022, which set out $39 billion to help build, expand and modernize domestic semiconductor manufacturing plants. Amkor also indicated it plans to apply for an investment tax credit that could cover up to 25% of certain costs.
“One of the fundamental goals of CHIPS and the Science Act is to build an advanced packaging ecosystem in the United States so that chip production can be completed domestically from start to finish,” Commerce Secretary Gina Raimondo said in a statement. “Advanced packaging drives chip innovation at every level.”
The city of Peoria also committed to covering $3 million in infrastructure costs to accommodate the facility.
Amcor plans to have more than 500,000 square feet of cleanroom space on its 55-acre Peoria campus. The company aims to complete the first phase of its manufacturing facility within three years. The company did not immediately respond to a request for comment regarding the contract for the project.
The company has already selected Apple as the first customer for the facility. Amkor said it has been working with Apple on the planning for the facility, which will package and test chips manufactured for Apple at the TSMC factory under construction in Phoenix. In semiconductor manufacturing, “packaging” refers to the case that surrounds the semiconductor, protecting it and enabling it to be connected to other chips.
“Amkor’s Arizona facility will enable us to support the growing semiconductor manufacturing industry, and we look forward to offering our customers domestic, advanced packaging and testing capabilities,” Amkor president and CEO Geir Rutten said in a statement.
