Amkor Technology, a leading outsourced semiconductor assembly and test provider, announced a major expansion of its Arizona packaging campus. The new phase nearly triples the cleanroom space and more than doubles the total investment to approximately $12 billion, reflecting strong customer demand and strategic US-based capacity growth.
- Campus cleanroom space to grow from 33,000 to 93,000 square meters
- Total investment raised to $12 billion, with construction completing by 2029
- Major customers include Apple, Nvidia, and TSMC
What happened
Amkor announced Phase 2 of its Arizona chip packaging campus expansion, adding 60,000 square meters of cleanroom space to the previously planned 33,000 square meters. This results in about 93,000 square meters of total cleanroom area on a 170-acre site in Peoria, northwest of Phoenix. The expansion more than doubles the planned investment to approximately $12 billion, up from the original $2 billion announced in 2023 and $7 billion at the groundbreaking in 2025. Construction will start by late 2027 and is slated to finish by the end of 2029.
The expanded facility is expected to employ over 3,500 people once both phases are completed. Customer demand has already surpassed Phase 1 capacity, driving the need for this significant increase. The investment includes contributions from the US CHIPS Act, which provided up to $407 million in funding, Nvidia’s $1.5 billion prepayment for future packaging capacity, and the bulk of the capital coming from Amkor itself as it continues substantial capital expenditures.
Why it matters
This campus is the first high-volume outsourced advanced packaging site in the United States, addressing a critical bottleneck in the semiconductor supply chain. Advanced packaging, which involves assembling multiple dies into a single chip package, is crucial for modern semiconductor products like AI accelerators and high-performance processors. The demand for this capability has outpaced capacity worldwide, making domestic growth important for supply chain resilience and reducing reliance on Asian foundries.
Amkor’s Arizona expansion reflects strong confidence from key customers including Apple, Nvidia, and TSMC, all of whom have committed significant business to the site. Apple plans to use the facility for packaging Apple silicon made at TSMC’s Arizona fabs. Given Amkor’s market value is roughly equal to the planned campus cost, this investment highlights the company’s strategic pivot toward advanced, high-value packaging services that are increasingly vital in cutting-edge semiconductor manufacturing.
What to watch next
Key developments to track include the progress of the campus construction timeline, which aims to start in late 2027 and conclude by the end of 2029. The operational scale-up and hiring of over 3,500 employees will also impact the regional semiconductor ecosystem and workforce. Additionally, the specific customer commitments and capacity allocations for Phase 2 remain undisclosed and will be important indicators of ongoing market demand and partnership strength.
Monitoring how Amkor integrates this facility with its existing global footprint — including its busy advanced packaging site in Vila do Conde, Portugal — will shed light on its competitive positioning against global rivals like Taiwan’s ASE. Finally, broader shifts in semiconductor packaging demand driven by technology trends such as artificial intelligence and automotive electrification will influence Amkor’s growth trajectory and the US supply chain’s evolution.