Amkor Technology, Inc.(Nasdaq: AMKR), a leading provider of semiconductor packaging and test services, on Thursday announced to build an advanced packaging and test facility in Peoria, Arizona. By the time of full project completion, Amkor projects to invest approximately $2 billion and employ approximately 2,000 people at the new facility.
Amkor is the only US-headquartered OSAT (outsourced semiconductor assembly and test) service provider with advanced packaging technology capability and high-volume manufacturing experience. Upon completion, this will be the largest outsourced advanced packaging facility in the US.
"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," said Giel Rutten, Amkor’s president and chief executive officer. “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 secured approximately 55 acres of land with intent to build a state-of-the-art 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.
The new manufacturing location will uniquely position Amkor among a strong ecosystem of front-end fabs, IDMs, and suppliers with current or expanding presence in the area, including TSMC, Intel, Applied Materials, ASML and others.
To ensure the success of a project of this magnitude in the United States, Amkor has applied for CHIPS funding. The CHIPS and Science Act was established to boost US competitiveness, innovation, and national security in the semiconductor industry. As part of the $52.7 billion program, the federal government will award $39 billion to US companies in competitive grants to manufacturers to finance construction, expansion, and modernization of facilities and equipment. These funds will be critical to Amkor’s project moving forward.
About Amkor Technology, Inc.
Amkor Technology, Inc. is the world's largest US headquartered OSAT (outsourced semiconductor assembly and test) service provider. Since its founding in 1968, Amkor has pioneered the outsourcing of IC packaging and test services and is a strategic manufacturing partner for the world's leading semiconductor companies, foundries, and electronics OEMs. Amkor provides turnkey manufacturing services for the communication, automotive and industrial, computing, and consumer industries, including but not limited to smartphones, electric vehicles, data centers, artificial intelligence, and wearables. Amkor's operational base includes production facilities, research and development centers, and sales and support offices located in key electronics manufacturing regions in Asia, Europe, and the United States.
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