Introduction
In a bold move signaling the resurgence of U.S. semiconductor manufacturing, Amkor has broken ground on a $7 billion advanced packaging and testing campus in Peoria, Arizona.
Backed by the Trump Administration’s CHIPS for America Program and key industry giants like Apple, NVIDIA, and TSMC, the project marks a major leap toward reestablishing America’s full end-to-end chip manufacturing capabilities.
Key Takeaways
$7 Billion Investment: Amkor expands its Arizona operations to include two massive packaging and testing facilities.
U.S. Industry Milestone: The first high-volume advanced packaging site built on American soil.
Strategic Partnerships: Collaboration with Apple, NVIDIA, and TSMC to create a complete domestic chip ecosystem.
Economic Impact: Expected to create 3,000 new high-wage jobs and strengthen Arizona’s semiconductor corridor.
National Significance: Reinforces America’s goal to secure chip supply chains and lead the AI manufacturing race.
/techovedas.com/tsmc-taiwan-expansion-15-new-chip-fabs-amid-global-push-and-safety-setbacks/
America’s Chip Comeback Begins in Peoria
Once a quiet desert city, Peoria, Arizona is fast becoming a symbol of America’s industrial revival. With the groundbreaking of Amkor’s $7 billion semiconductor campus, the region cements its role in the next era of high-tech manufacturing.
Amkor arizona investment includes two construction phases with over 750,000 square feet of cleanroom space, positioning it as the largest outsourced semiconductor assembly and test (OSAT) facility in North America. The first phase is slated for completion by mid-2027, with production ramping up in early 2028.
According to Amkor CEO Giel Rutten, “This groundbreaking represents a bold step in Amkor’s long-term strategy for growth and innovation. We’re building a facility that will meet our customers’ most advanced needs and help shape the future of semiconductor manufacturing in the United States.”
Building the Missing Link in America’s Chip Ecosystem
For years, the U.S. has dominated chip design and fabrication, but advanced packaging and testing remained heavily outsourced to Asia — primarily Taiwan, South Korea, and Malaysia. Amkor’s new facility aims to close that gap.
The Arizona campus will package chips manufactured by TSMC’s Arizona fab, including Apple silicon and NVIDIA’s AI processors, enabling a seamless domestic semiconductor supply chain from wafer to finished product. This integration drastically reduces logistics dependencies and enhances supply chain security.
As TSMC Vice President Jun He explained, “Our collaboration in Arizona will create a streamlined domestic ecosystem designed to define the future of semiconductor manufacturing.”
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Powering AI, HPC, and the Next Industrial Revolution
Amkor’s new facility isn’t just another chip plant — it’s an AI-era manufacturing hub. It will specialize in advanced packaging technologies, such as 2.5D and 3D integration, chiplet architectures, and System-in-Package (SiP) solutions — all crucial for next-generation applications in artificial intelligence (AI), high-performance computing (HPC), 5G, and autonomous vehicles.
NVIDIA CEO Jensen Huang captured the moment perfectly:
“AI has ignited a new industrial revolution — and with it, the chance to reindustrialize America. Amkor’s new Arizona facility is a defining milestone in bringing this capability home.”
Apple, NVIDIA, and the Power of Partnerships
Few projects illustrate public-private collaboration as clearly as this one.
Apple’s Chief Operating Officer Sabih Khan confirmed that the company’s chips produced at TSMC Arizona will be packaged and tested at Amkor’s new site, underscoring the creation of a complete U.S. silicon supply chain.
“Factories across the United States are producing 19 billion chips for Apple this year alone,” Khan said. “Amkor’s new facility will package and test Apple silicon made just down the road. This is part of our $600 billion commitment to create jobs and accelerate innovation right here in the U.S.”
This partnership framework — combining TSMC’s front-end fabrication, Amkor’s backend packaging, and Apple and NVIDIA’s product innovation — positions the U.S. to compete head-to-head with Asian semiconductor powerhouses.
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Arizona: The New Silicon Powerhouse
Arizona’s transformation into a global chip manufacturing hub has been astonishing.With Intel’s Chandler fabs, TSMC’s $65 billion Arizona expansion, and Amkor’s new $7 billion site, Arizona is now America’s semiconductor capital.
Governor Katie Hobbs called it a “transformative investment.” She said it will create thousands of good-paying jobs and strengthen Arizona’s chip leadership.
Senator Mark Kelly praised the move. “Peoria will be the first place in the U.S. where millions of leading-edge microchips are packaged and tested,” he said. “This is what we envisioned with the CHIPS and Science Act.”
Industry voices agreed. Sandra Watson, CEO of the Arizona Commerce Authority, said Amkor’s facility will be “the largest and most advanced outsourced packaging site in North America.”
/techovedas.com/2b-boost-amkor-chooses-peoria-for-u-s-semiconductor-packaging-hub/
Economic and Technological Impact
The $7 billion campus isn’t just about chips — it’s about rebuilding economic and technological sovereignty.
Key impacts include:
- 3,000 direct jobs in engineering, materials science, and operations.
- Thousands more indirect jobs in logistics, construction, and local services.
- Enhanced STEM education pipelines through partnerships with Arizona State University and Maricopa community colleges.
- A stronger national supply chain for AI and defense-related semiconductors.
Amkor arizona project leverages incentives from the CHIPS for America Program and the Advanced Manufacturing Investment Tax Credit, both aimed at making the U.S. globally competitive in chip production.
/techovedas.com/amkor-to-build-2-billion-plant-in-usa-packaging-chips-for-tsmc-apple/
Smart Manufacturing: The Future Factory Model
The new Amkor campus will use smart manufacturing technologies. It will feature AI-driven automation, predictive quality analytics, and sustainable power systems. These tools will boost chip packaging efficiency and cut waste and energy use.
Amkor will also use digital twins and machine learning to manage workflows. The goal is to make the site a model for next-generation semiconductor production.
https://medium.com/p/d0fb10805afc
Conclusion:
Amkor Technology’s $7 billion Arizona project is far more than an industrial expansion — it’s a strategic leap toward reclaiming America’s chipmaking independence.
By linking Apple, NVIDIA, and TSMC in one regional ecosystem, the facility promises to redefine how semiconductors are built, packaged, and delivered in the AI-driven future.
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