Amkor expected to bolster Valley microchip supply chain

By Philip Haldiman
Mail | X: @PhilipHaldiman

The northwest Valley recently scored with the announcement of major microchip company Amkor planning to locate in Peoria.

And according to local government and economic development leaders, it probably won’t be the last company looking for a home in the north Valley.

With the presence of Amkor only a few miles from major chip producer Taiwan Semiconductor Manufacturing Co., experts say it will bolster the region’s semiconductor supply chain.

Chris Camacho, Greater Phoenix Economic Council president and CEO, said Amkor will package and test chips for Apple that TSMC manufactures at the north Phoenix fab, assuring that a bulk of the process will happen close to the manufacturing point.

This proximity will expedite processes, allow Amkor and TSMC to save money, and contribute to the strength and security of the domestic chip supply, Camacho said.

“Greater Phoenix is rapidly becoming the most advanced semiconductor hub in the nation,” he said. “Amkor’s presence will drive increased expansion activity as more and more companies see that operating in greater Phoenix puts them at the center of the national semiconductor sphere.”

Amkor plans to build a 500,000-square-foot manufacturing facility on 55 acres within about five miles of the TSMC plant.

The company’s advanced packaging services support the computing, communication, automotive and industrial, as well as consumer industries. This includes chip packages for smartphones, electric vehicles, data centers, artificial intelligence and wearables.

Chip packaging provides protection for the final product and is the final step in the fabrication process.

Building a cluster

Christine Mackay, city of Phoenix’s community and economic development director, said her city has collaborated with TSMC since at least 2019, and there are now 19 companies that serve the supply chain in the Valley, a cluster of them near Interstate 17 north of Pinnacle Peak Road, along Loop 303, and other locations.

Aside from Amkor in Peoria, semiconductor suppliers have located near TSMC in Glendale, Surprise and the Deer Valley area of Phoenix. This includes projects such as Rinchem in Surprise, Marketech International Corp. in the Deer Valley area, and Linde adjacent to the TSMC site.

This West Valley expansion is building on an already thriving semiconductor industry in Maricopa County, particularly in the East Valley anchored by Intel, Microchip Technologies and more, supported by a labor force of around 30,000 employees.

Looking forward, GPEC is working with 13 active projects related to the semiconductor supply chain, some of which are considering sites in north Phoenix and Peoria.

It has been tremendous for the Valley and an economic multiplier that fuels the region, as well as a great opportunity for more businesses to join the supply the chain, Mackay said.

“There is rarely a day that goes by that one of their suppliers doesn’t reach out to us for a potential location,” Mackay said. “Of all of our locates that we’ve had, the sites work together for regional wins ... but the thing about TSMC is that it is not just a benefit for the city of Phoenix, but a benefit for every city in the West Valley and east as far south as Casa Grande.”

A development agreement between Peoria and Amkor is expected to go before Peoria’s city council in early 2024.

The deal is expected to bring 2,000 jobs to Peoria, representing a $2 billion local investment. An influx of TSMC employees has already begun taking residence in the city of Peoria.

Meeting new needs

Peoria Economic Development Director Jennifer Stein said the city has boasted a high quality of life that draws people, and the city’s top-performing schools, outdoor lifestyle and amenities are being sought after by new residents.

“As we start to attract a more international workforce, we want to work to cultivate a community that is reflective of and embraces their culture, creating a welcoming environment for people to call home,” she said.

Part of that attraction to the supply chain in the north Valley is having the housing stock necessary to serve current and future employees of TSMC.

Peoria Planning and Zoning Commission Chair Clay Allsop said it is no coincidence the commission has approved many new apartment buildings in recent years and that only months after approving 1,500 multifamily units in Vistancia’s Five North that Amkor announced its decision to locate in Peoria.

The 7,100-acre master-planned Vistancia is bound to be a popular location for future employees of TSMC to live, considering its proximity and amenities, Allsop said.

“I am ecstatic to see the economic development successes Peoria has recently experienced. As soon as TSMC announced its investment in Phoenix, I knew Peoria had a once-in-a-generation opportunity to seize the moment,” he said. “During my time as chairman of the planning and zoning commission I have focused on ensuring Peoria sends the right signals to corporate site locators and developers that Peoria is open for business.”

Peoria Chamber of Commerce President and CEO Rhonda Carlson also touted the transformation TSMC and significant supply chain partners like Amkor will bring to the region, including Vistancia and northern Peoria.

"We value any opportunity that supports substantial business growth and job creation in the West Valley and look forward to working with the city of Peoria to ensure effective processes are in place that will allow businesses of all sizes to thrive here for years to come," she said. "North Peoria will continue to serve as a hot spot for development. Our residential and commercial sectors will need to keep pace with the growing needs of our city to best support our future workforce and residents."

Editor’s note: An initial quote from Carlson was removed from this report because it did not reflect the full context of the subject matter. The current quote from Carlson does.

Philip Haldiman can be reached at phaldiman@iniusa.org, or on Twitter @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.