Amkor Breaks Ground on $7 Billion Advanced Packaging Plant in Arizona

Amkor Technology has started building a massive semiconductor packaging and testing facility in Peoria, Arizona. The company plans to invest up to $7 billion in the project, which is expected to create around 3,000 jobs once fully operational.

The first phase of construction is set to finish by mid-2027, with production starting in early 2028. The facility will focus on advanced packaging where processors are assembled and tested before they’re used in products.

This move helps close a key gap in America’s semiconductor supply chain. Right now, most packaging and testing happens in Asia and by bringing this process to the U.S., Amkor aims to reduce shipping risks and improve reliability for industries that depend on high-performance and high-reliability chips such as electric vehicles, aerospace, and industrial automation.

Amkor’s Arizona site will also support major chipmakers like Apple, NVIDIA, and TSMC, which already operate or are building fabs in the region. The project may receive up to $400 million in CHIPS Act funding from the U.S. government to support construction and workforce development.

In the next few years, we are expected to see more of the chip manufacturing process, from wafer production to packaging, will happen on U.S. soil that could result to shorter lead times, better supply security, and less dependence on overseas facilities.

While production won’t start until 2028, Amkor’s investment signals growing confidence in America’s ability to rebuild a complete semiconductor ecosystem one ready to support the next generation of AI, EV, and aerospace technologies.