“Expansion of a US semiconductor supply chain is underway, and as the largest US-headquartered advanced packaging company, we are excited to lead the charge in bolstering America’s advanced packaging capabilities,” says Amkor CEO Giel Rutten, “semiconductor companies, foundries, and other supply chain partners understand the need to strategically broaden their geographic footprint. The announcement of our new advanced packaging and test facility in Arizona is a clear signal of our intent to help our customers ensure resilient supply chains and be a part of a strong American semiconductor ecosystem.”

Amkor has bought about  55 acres of land and intends to build a manufacturing campus with more than 500,000 square feet of clean room space.

The first phase of the manufacturing plant is targeted to be ready for production within the next two to three years.

Amkor plans to provide high volume, leading-edge technologies for advanced packaging and testing of semiconductors to support critical markets such as high-performance computing, automotive, and communications.

Amkor worked closely with Apple on the strategic vision and initial manufacturing capability of the Peoria facility, which will package and test chips produced for Apple at the nearby TSMC fab. When the new facility opens, Apple will be its first and largest customer.

Amkor first established its presence in the Greater Phoenix area in 1984..

“As one of the first advanced packaging facilities in the US, this is a huge step forward to reducing dependence on other countries in the microchip supply chain,” says Arizona Senator Mark Kelly, “when negotiating the CHIPS and Science Act, one of my top priorities was making sure companies like Amkor had the support needed to develop a resilient supply chain in places like Arizona that are leading the way in bringing microchip manufacturing back to America.”

“Amkor has been a strategic OSAT partner to TSMC for many years,” says TSMC CEO  C.C. Wei, “TSMC applauds Amkor for investing in the future of the semiconductor industry with us in Arizona. We share Amkor’s excitement for its significant investment and the value this facility will bring to TSMC, our customers, and the ecosystem.”

Amkor says that Chips Act funding will be critical if the plan is to go ahead. It says it has applied for funding under the Act and the US Department of Commerce has said that the first subsidies will be announced before the end of the year.

In October, Amkor opened a $1.6 billion packaging plant in Vietnam.