Amkor Technology, Inc., Tempe, Ariz., a leading provider of semiconductor packaging and test services, announced it has signed a non-binding preliminary memorandum of terms with the US Department of Commerce to receive proposed funding as part of the CHIPS and Science Act.
Amkor announced in November 2023 its plans to build its first domestic OSAT (outsourced semiconductor assembly and test) facility in Peoria, Arizona. Amkor projects to invest approximately $2 billion and employ approximately 2,000 people at the new facility. Upon completion, this will be the largest outsourced advanced packaging and test facility in the United States.
The terms include:
- Up to $400 million in proposed direct funding
- Access to $200 million in proposed loans.
Amkor plans to take advantage of the Department of the Treasury’s Investment Tax Credit, which is expected to be up to 25% of qualified capital expenditures.
Amkor’s Arizona facility is an essential part to establishing a robust and resilient domestic semiconductor supply chain. Establishing an advanced packaging and test facility in Arizona allows Amkor to leverage its status as a strategic manufacturing partner for the world’s leading semiconductor companies, foundries, and OEMs, while playing a significant role in ensuring competitive semiconductor manufacturing innovation in the US.
Commerce Secretary Gina M. Raimondo identified advanced packaging as a major area of focus for the US government’s effort to rebuild American semiconductor manufacturing. The Commerce Department emphasized that developing robust advanced packaging manufacturing capacity and capability is a key priority and essential to the success of the CHIPS program.
Amkor has secured approximately 55 acres 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 facility is targeted to be ready for production within three years.
Amkor and TSMC have been working closely 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. The companies’ shared vision is to enable seamless technology alignment for customers across a global manufacturing network.
Amkor first established its presence in the Greater Phoenix area in 1984 and is excited to expand its footprint in the evolving Arizona semiconductor industry. 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.
The project has garnered strong support as it expands the evolving semiconductor ecosystem, provides high-tech jobs, and increases economic energy in the Greater Phoenix area.
For more information:
Amkor Technology, Inc.
https://ir.amkor.com/
