Amkor Technology Raises Arizona Campus Investment to $12 Billion

Amkor Technology is significantly scaling its advanced semiconductor packaging and testing campus in Peoria, Arizona, raising its total planned investment to approximately $12 billion. The expansion accelerates the company's U.S. footprint to meet customer commitments that already exceed the capacity of the project's initial phase.

This new stage, designated as "Phase 2," represents a massive leap in the project's financial scope. The investment climbed from an initial $2 billion proposal in 2023 to $7 billion at the start of construction in 2025, reaching the current $12 billion valuation. To support this growth, Amkor received up to $407 million in funding through the federal CHIPS program. Phase 2 will add 60,000 square meters of cleanroom space, bringing the campus total to roughly 93,000 square meters. Construction for this second phase is scheduled to begin in late 2027, with completion expected by the end of 2029.

The Role of Advanced Packaging

Amkor operates as an outsourced semiconductor packaging and testing (OSAT) provider. In the semiconductor lifecycle, packaging is the critical final step after silicon wafers are manufactured; it involves encasing the chip for protection and connecting it to the outside world. The Peoria facility is designed as the first high-volume advanced packaging facility in the United States. By establishing this hub, Amkor creates domestic synergy with nearby chip production from industry giants TSMC and Intel, building a comprehensive semiconductor cluster within Arizona.

Strengthening the Domestic Supply Chain

This expansion responds to the explosive demand for AI and high-performance computing infrastructure. Historically, the advanced packaging stage of chip manufacturing has been heavily concentrated in overseas facilities. By bringing these capabilities to U.S. soil, Amkor helps the United States rebuild a complete domestic semiconductor supply chain. This shift reduces the industry's reliance on foreign facilities for the final, high-value stages of chip production, mitigating geopolitical risks and shortening the logistics loop for American tech firms.

Future Outlook

As the project moves toward the 2027 start date for Phase 2, the industry will monitor how quickly the facility scales to meet the needs of AI hardware developers. While the financial and physical footprints are now confirmed, the long-term impact on the regional labor market and the specific volume of chips the facility will process remain the primary metrics for success. The project stands as a bellwether for whether the U.S. can successfully repatriate the most complex segments of the semiconductor backend.