A small town in Arizona is receiving a significant boost in semiconductor chip manufacturing as global demand for the technology surges. Packaging and test service company Amkor Technology announced a significant expansion of its planned campus in Peoria, Arizona. The company pledged an additional $5 billion, bringing the total investment commitment to $7 billion.
Crews recently broke ground on the facility, eager to bring the nation’s first high-volume advanced packaging facility online. This is a critical step in strengthening the U.S. supply chain.
Semiconductor Chips and Their Role in Modern Technology
The semiconductor industry is the foundation of modern technology. Chips are the “brains” of devices that power communications, computing, AI, and global defense systems. While the U.S. has led the world in chip design, the country has outsourced the labor-intensive assembly, testing, and packaging (ATP) sector. As a result, vulnerabilities arose in the supply chain.
Advanced packaging is the process of assembling and interconnecting tiny, fabricated chips (or “dies”) to create a single, high-performance unit. Amkor’s facility will focus specifically on this process.
This technology is essential for products that require high processing power and efficiency. Amkor has major customers that develop powerful products, such as Apple and NVIDIA. Arizona’s campus is designed to help create a complete, end-to-end U.S. semiconductor manufacturing ecosystem.
Explore Tomorrow's World From Your Inbox
Get the latest science, technology, and sustainability content delivered to your inbox.
I understand that by providing my email address, I agree to receive emails from Tomorrow's World Today. I understand that I may opt out of receiving such communications at any time.
Investing in Semiconductor Technology
The scale of this investment reflects Arizona’s escalating role in America’s semiconductor resurgence.
“Arizona stands at the forefront of America’s semiconductor industry and Amkor is a vital part of that leadership,” said Governor Katie Hobbs. “Amkor’s new facility represents a transformative investment that will create thousands of good-paying jobs, help build a more resilient supply chain, and solidify Arizona’s semiconductor leadership.”
The state has become a national focal point for the industry. According to the Greater Phoenix Economic Council, the state has secured over $100 billion in semiconductor-related capital investment since 2020.
Sandra Watson, President and CEO of the Arizona Commerce Authority, said the facility will play a “critical role as the largest and most advanced outsourced packaging facility in North America.”
