Amkor Technology is going through the process of applying for a Foreign-Trade Zone designation for a manufacturing and distribution facility planned within the Vistancia commercial core and has asked Peoria Unified School District to submit a letter to express “no-objection” to the proposed designation.
The Peoria Unified governing board will consider approval of the "no-objection" letter at its public meeting Oct. 24.
The designation of FTZ status will provide Amkor with substantial savings on tariffs, duties, and other related costs. The designation will lower Amkor's property tax assessment rate in Vistancia from 16.5% to 5%, resulting in a change in assessments ratios and related tax implications, according to documents.
Amkor has asked Peoria Unified to formally provide a "no-objection" letter to this designation as the district is a taxing entity in the proposed FTZ location.
Peoria Unified officials say they are aware there are tax revenue implications involved in the establishment of an FTZ as well as an economic impact on the associated community.
The letter, addressed to Phoenix's FTZ Administrator Denise Yanez, states that PUSD understands the tax re-classification implications involved in the establishment of an FTZ and do not object to the new definition and determination of revenues that will result from an FTZ designation.
"We believe the FTZ status will generally have a positive economic impact on the Peoria Unified School District community and our region by increasing business activity. Specifically, new employment and increased international trade. Therefore, we have no objection to Amkor’s proposed FTZ designation," the letter states.
Amkor says phase 1 of the project will invest $1.5 billion to build more than 215,000-square-feet of "clean room space within a total building footprint of approximately 650,000 square feet."
Phase 2 will include an additional investment to double the clean room space and add 235,800-square-feet of supporting functional space, bringing Amkor's total investment to more than $2.5 billion.
The project's first phase is expected to be completed by the first quarter of 2027, with full production by the first quarter of 2028.
Among other services, Amkor will package and test microchips for Cuppertino, California-based Apple Inc. that nearby Taiwan Semiconductor Manufacturing Co. will manufacture at its north Phoenix fab, assuring a bulk of the process will happen close to the manufacturing point.
In February, Amkor signed a development agreement with the city of Peoria solidifying the city as an important stop on the Taiwan Semiconductor microchip supply chain in the northwest Valley.
The agreement states Amkor will close escrow on the 56-acre property on or before Oct. 31, 2024, and agrees to commence construction on or before Sept. 30, 2025.
Earlier this month, Amkor and TSMC signed a memorandum of understanding to collaborate and bring advanced packaging and test capabilities to Arizona, continuing to pave the path for a microchip supply chain running through Peoria.
While an MOU is not legally binding, it outlines the companies’ intentions of working together.
Meet Philip Haldiman is an award-winning journalist who most recently took first place for investigative reporting in 2023 from Arizona Newspapers Association. He joined Independent Newsmedia, Inc., USA, in 2015, covering Sun City West his first year. Since 2016, he has covered the city of Peoria. Prior to coming to INI, he was a reporter with The Arizona Republic for seven years, covering numerous cities throughout the Valley. Before that, he was a freelance writer.
Community: Haldiman spearheads the Peoria Independent Hometown Heroes Awards program, honoring local individuals and businesses that give back to the community. He has hosted local candidate forums over the years and is a member of the Society of Professional Journalists. Haldiman also served as a member of the Journalism Program Community Advisory Board at Glendale Community College. Outside journalism, Haldiman served as a member of the city of Peoria Complete Count Committee for the Census, 2019-2020. Lastly, he has served as a member of his HOA governing board since 2021.
Education: Arizona State University with a BA in Journalism and Mass Communications and a BA in Theater.
Random Fact: Haldiman is a fourth-generation Arizonan as well as wrote and produced an autobiographical comic book about his time spent in Hollywood and his life as a cult film star.
Hobbies: He enjoys hiking Arizona’s mountainous landscapes and is currently working on a play for the stage.
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