US government confirms $400m grant to Amkor for Peoria plant
The US Department of Commerce has signed a non-binding preliminary MOA to provide up to USD 400 million for Amor's semiconductor assembly and test facility in Peoria.
Tempe-based Amkor Technology signed a preliminary agreement with the federal government earlier this year to receive proposed funding as part of the CHIPS and Science Act. The primary function of the new facility will be to package and test the chips produced for Apple at a nearby facility run by TSMC. Amkor wants to start construction by September 2025 and have the new site operational within two to three years, and entirely completed by September 2034.
Now, Phoenix Representative Ruben Gallego has confirmed that the funding is approved. It will complement Amkor’s investment of approximately USD 2 billion and fund 2,000 jobs in Peoria, Arizona.
“Once again, our CHIPS and Science Act is delivering for Arizona,” said Rep. Gallego. “The Valley of Sun is the national hub for end-to-end semiconductor manufacturing, which is critical to our national security. The funding announced today will create even more good-paying jobs and lower costs for Arizonans. I look forward to working with Commerce and the City of Peoria to ensure this project’s success.”
The agreement is another big win for the state pf Arizona. According to the Arizona Commerce Authority, from January 2020 to March 2024, Arizona attracted more than 35 announced semiconductor industry expansions representing over 13,000 jobs and over USD 65 billion in investment, making Arizona number one in the nation for new semiconductor jobs, investment, and supplier expansions.
Amkor already does testing and packaging for TSMC and Intel, and employs about 30,000 people in 11 countries, including South Korea, Japan, the Philippines, Portugal and Vietnam. Most of its business is in semiconductor packaging for the mobile and automotive sectors.
