Peoria just became a big stop on Arizona’s — and the world’s — semiconductor supply chain.
Amkor Technology Inc., a major U.S.-based semiconductor assembly and test service provider, announced plans to locate in the city and build a state-of-the-art advanced semiconductor packaging and testing campus designed to work with the Taiwan Semiconductor Manufacturing Co. facility being constructed in north Phoenix.
Amkor plans to build a 500,000-square-foot manufacturing facility on 55 acres in close proximity to the TSMC plant.
While final details of the development agreement are still being worked out, the deal is expected to bring 2,000 jobs to Peoria, representing a $2 billion local investment.
The company’s advanced packaging services support the computing, communication, automotive and industrial, as well as consumer industries. This includes smartphones, electric vehicles, data centers, artificial intelligence and wearables.
The facility will package and test chips for Apple produced at TSMC.
“It is no secret that our nation is reshoring its advanced manufacturing industries. We are proud of Peoria’s global leadership in this movement, and the significant capital investment and quality jobs that it brings to our community,” Mayor Jason Beck said in a news release. “This tremendous announcement is a credit to the city council’s commitment to economic development, and staff’s hard work and dedication on this project.”
A final development agreement is scheduled to go before council in early 2024, and the first phase of the manufacturing plant is targeted for production to begin within the next two to three years, city officials said.
Advanced packaging is a critical phase of the semiconductor manufacturing process, which typically occurs overseas, even for microchips made in the U.S.
The federal government has made advanced manufacturing like this a priority and Congress passed the CHIPS and Science Act of 2022 to bolster the industry in the U.S.
As part of the $52.7 billion program, the federal government will award $39 billion in incentives to U.S. companies at every level of the semiconductor supply chain to expand operations in the U.S. Amkor has applied for CHIPS funding, and officials say these funds will be critical to the Peoria facility moving forward.
Arizona Sen. Mark Kelly, one of the architects of the CHIPS Act, said expanding advanced packaging capacity is critical to strengthening the domestic semiconductor industry.
The Democratic senator said making sure companies such as Amkor have the support needed to develop a resilient supply chain in places like Arizona has been a priority to him.
“Amkor’s $2 billion project — one of the largest microchip investments announced in Arizona since the passage of the CHIPS Act last year — will create good-paying jobs, strengthen our local economy, and help protect our national security,” Kelly said in a statement. “As one of the first advanced packaging facilities in the U.S., this is a huge step forward to reducing dependence on other countries in the microchip supply chain.”
TSMC has been in the process of building a $40 billion, more than 1,000-acre microchip fabrication facility only a few miles from Peoria, as the crow flies.
Amkor workers will package and test chips for Apple produced at the nearby Taiwanese facility, located west of Interstate 17 along West Dove Valley Road.
Officials with Amkor say they have worked closely with Apple on the strategic vision and initial manufacturing capability of the Peoria facility. When the new facility opens, Apple will be its first and largest customer, according to the release.
“Apple is committed to help build a new era of advanced manufacturing, right here in the U.S.,” Apple COO Jeff Williams said in the release. “Apple and Amkor have worked together for more than a decade packaging chips used extensively in all Apple products, and we are thrilled that this partnership will now deliver the largest OSAT advanced packaging facility in the United States.”
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.
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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