Kelly, Sinema Celebrate $400 Million CHIPS and Science Act Award to Amkor Technology, Highlight Boost to Arizona Economy, Job Creation, and Semiconductor Innovation

The award is from the CHIPS and Science Act, which was negotiated by Arizona Senators Mark Kelly and Kyrsten Sinema to bring microchip manufacturing back to America, create jobs, and strengthen national security

Funding to Bring Cutting-Edge Semiconductor Packaging Facility and 2,000 Jobs to Peoria, Arizona

Today, the Department of Commerce announced that Amkor Technology Inc. will receive $400 million in direct funding from the CHIPS and Science Act. This award will support Amkor’s $2 billion investment—one of the largest microchip investments announced in Arizona since the passage of the CHIPS Act—to establish a state-of-the-art semiconductor packaging facility in Peoria, Arizona, creating 2,000 jobs and enhancing the United States’ semiconductor supply chain. 

Arizona is home to Amkor Technology’s new advanced packaging and test facility. This state-of-the-art facility in Peoria will utilize cutting-edge packaging technologies such as 2.5D technology, which is essential for high-performance computing and Artificial Intelligence applications. When fully operational, Amkor will package and test millions of leading-edge chips, serving autonomous vehicles, 5G/6G smartphones, and large-scale data centers. This development positions Arizona as a critical hub for semiconductor packaging, testing, and innovation, further strengthening the state’s role in the global microelectronics industry. 

“This is a big day for the state of Arizona and the entire country. With this award and Amkor’s significant investment, their new facility in Peoria will be one of the first advanced packaging facilities in the United States, marking a critical step in strengthening our microchip supply chain,” said Kelly. “This project will create great-paying jobs, many of which won’t require a four-year degree. The Chips and Science Act is working for Arizona, providing new opportunities for our local workforce, and is working for our country, bringing back advanced manufacturing capabilities, and strengthening our national security. 

“Today’s investment from our bipartisan CHIPS and Science Law for Amkor Technology will create 2,000 strong careers for Arizonans – fueling innovation, expanding opportunity, and strengthening Arizona’s international leadership in semiconductor manufacturing,” said Sinema. 

“Peoria is thrilled to celebrate this CHIPS Act commitment to further support Amkor Technology,” said Peoria Mayor Jason Beck. “This investment underscores the importance of advanced packaging in the semiconductor industry and reinforces Peoria’s position at the forefront of tech and innovation. This additional funding will further enhance local communities through quality job creation, while driving economic development growth for years to come.” 

Background: 

Amkor Technology, Inc. is the world’s largest US headquartered outsourced semiconductor assembly and test service provider and a strategic manufacturing partner for the world’s leading semiconductor companies. Advanced packaging is a critical phase of the semiconductor manufacturing process, which typically occurs overseas, even for microchips made in the United States. Amkor’s advanced packaging services support the communication, automotive and industrial, computing, and consumer industries, including smartphones, electric vehicles, data centers, artificial intelligence, and wearables. In November 2023, Amkor announced its investment of approximately $2 billion in a new advanced packaging and test facility in Peoria, which is expected to employ over 2,000 people. 

Kelly and Sinema worked for nearly two years to negotiate and champion the CHIPS and Science Act, which includes Kelly’s $52 billion plan to boost domestic microchip manufacturing. Thanks to their leadership, Arizona is well positioned to become a global hub for microelectronics research, development, testing, manufacturing, and packaging. With new semiconductor plants being constructed in Maricopa County, Arizona workers are already feeling the impact of this historic law.   

Since the passage of the CHIPS and Science Act, more than $60 billion in private investment for 38 semiconductor industry projects have been announced in Arizona.