Amkor secures $407M in federal funds for Peoria facility

By Philip Haldiman
Mail | X: @PhilipHaldiman

The city of Peoria has hit another milestone as an important stop on the microchip supply chain developing in the north Valley.

With plans for Amkor Technology to open a new advanced packaging and test facility in Peoria, the Biden administration recently announced the U.S. Department of Commerce awarded the tech company up to $407 million in direct funding under the CHIPS Act, which has provided more than $150 billion in investments to the American semiconductor manufacturing industry since the bill was signed in 2022.

The department will disburse the funds to Amkor based on the company’s completion of project milestones.

Mayor Jason Beck said Peoria is proud to celebrate Amkor’s CHIPS Act award, an important investment that strengthens economic development across the city and the region beyond with a plan for 2,000 construction jobs and 2,000 manufacturing jobs.

This project solidifies Peoria’s leadership along the semiconductor supply chain and reaffirms the city’s commitment to fostering a strong and growing local economy, Beck said.

“Amkor’s state-of-the-art packaging and test facility highlights our city’s growing reputation as a center for innovation and advanced technology,” he said.

In November, Amkor closed escrow on a 56-acre property in the commercial core of Vistancia bounded by Westward Skies Drive, Desert Cactus Lane, Peakview Road and Espial Avenue.

The Tempe-based microchip packaging and testing company is expected to be an important stop along the microchip supply chain that will center on nearby Taiwan Semiconductor Manufacturing Co., assuring a bulk of the process to create processors for companies like California-based Apple Inc. will happen close to the manufacturing point.

U.S. Secretary of Commerce Gina Raimondo stated in a news release that bringing advanced chip packaging to the U.S. will mean chips semiconductors need to be sent overseas after they have been manufactured.

“Thanks to Amkor’s investment in Arizona, the U.S. will have the world’s most leading-edge packaging technologies for the first time, enhancing domestic supply chain resilience and establishing the U.S. as a global technology leader for decades to come. Amkor’s project will support critical industries, such as AI and high-performance computers, and create thousands of high-paying jobs,” Raimondo said.

Officials say Amkor eventually will be Peoria’s largest private employer, and the 500,000-square-foot facility will be the country’s largest outsourced advanced microchip packaging facility.

The company’s next major milestone will be starting construction, which is set to be on or before Sept. 30, 2025, according to the development agreement.

Most recently, Peoria City Council approved a joint development agreement in October between the city, Vistancia Development LLC and Amkor to identify and define the project’s design, construction and cost responsibilities.

Earlier in October, Amkor and TSMC signed a memorandum of understanding to collaborate and bring advanced packaging and test capabilities to Arizona. While an MOU is not legally binding, it outlines the companies’ intentions of working together.

Matthew Bullock, who will be sworn in January as a the new Peoria council member for the Mesquite District, where the new Amkor facility will be located, said as the owner of a data center and cybersecurity company, he supports the purpose of the CHIPS Act and is happy to see some taxpayer money flowing to Amkor.

While Bullock said he is not a fan of the chosen location for Amkor, the CHIPS funds will help to speed up the facility’s development and hopefully allow for less city money being used for new infrastructure in the area, which is projected to be about $4.2 million.

“Although it is common to have a private-public financial agreement for a large facility to bring tax dollars and jobs, the infusion of CHIPS Act money would allow for Amkor and the city of Peoria to both achieve their goals without spending as much as originally estimated from both organizations,” Bullock said. “If we can continue to attract technology-related companies for the duration of the CHIPS Act, Peoria will be able to build a strong tax base, provide for higher-paying employment and still keep the open spaces, parks and nicer-home developments as we correctly develop north Peoria.”

Philip Haldiman can be reached at phaldiman@iniusa.org, or on X @philiphaldiman. We’d like to invite our readers to submit their civil comments, pro or con, on this issue. Email AZOpinions@iniusa.org.

Philip Haldiman
Senior News Editor | Peoria

phaldiman@iniusa.org

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.