Kelly Announces Finalized $407 Million CHIPS and Science Act Award to Amkor Technology, Highlighting Major Investment in Arizona Jobs and Semiconductor Innovation
Department of Commerce and Amkor Finalize Agreement to Support Advanced Semiconductor Packaging Facility in Peoria
The CHIPS and Science Act was negotiated by Arizona Senators Mark Kelly and Kyrsten Sinema to bring microchip manufacturing back to America, create jobs, and strengthen national security
Today, Arizona Senator Mark Kelly announced the Department of Commerce has finalized an award of up to $407 million to Amkor Technology, Inc. through the CHIPS and Science Act. This funding supports Amkor’s $2 billion investment to establish a state-of-the-art semiconductor packaging facility in Peoria, Arizona, creating over 2,000 high-paying jobs and continue to position the state as a critical hub for advanced microchip innovation and production.
Arizona is home to Amkor Technology’s new advanced packaging and test facility—the company’s first ever manufacturing facility in the United States. This new facility in Peoria will utilize cutting-edge packaging technologies, such as 2.5D technology, which is vital for applications in artificial intelligence, high-performance computing, autonomous vehicles, and next-generation smartphones. Once operational, the facility will package and test millions of microchips, supporting semiconductor innovation and helping to reduce reliance on overseas production.
“This finalized agreement with Amkor brings another critical piece of the microchip supply chain back to our shores and cements Arizona’s position as a global leader in microchip packaging and innovation,” said Kelly, a chief negotiator of the CHIPS and Science Act. “With Amkor’s cutting-edge facility in Peoria, we’re not only creating thousands of good-paying jobs but also ensuring that critical technologies like artificial intelligence and autonomous vehicles are powered by chips made and packaged right here in the U.S. These investments are a testament to the CHIPS Act’s success in strengthening our supply chains, boosting national security, and solidifying America’s leadership in the global semiconductor industry.”
“We’re proud that Arizona-based Amkor is a globally recognized powerhouse in advanced packaging technology, and we’re even more thrilled that they have decided to expand here and add to our vibrant semiconductor ecosystem. This historic investment to reshore an essential part of the semiconductor supply chain means more opportunities, more good-paying jobs, and more to look forward to for working class Arizonans. I am thrilled to see this come to fruition and thank the members of our Congressional delegation who worked to pass the CHIPs Act. Together, we are going to continue expanding Arizona’s impact on national security and economic prosperity – with Arizonans at the center of it all – for generations to come,” said Arizona Governor Katie Hobbs.
“Peoria is proud to celebrate Amkor’s CHIPS Act award, an important investment that strengthens economic development across our city and the region beyond. Amkor’s state-of-the-art packaging and test facility highlights our city’s growing reputation as a center for innovation and advanced technology. With 2,000 manufacturing jobs and another 2,000 construction jobs, this project solidifies Peoria’s leadership along the semiconductor supply chain and reaffirms our commitment to fostering a strong and growing local economy,” said Peoria Mayor Jason Beck.
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. This marks Arizona’s third finalized award through the CHIPS and Science Act following TSMC’s finalized award and the Intel finalized award this year.
This year, the President signed into law Kelly’s bipartisan bill, the Building Chips in America Act, which will streamline federal permitting processes for microchip manufacturing projects while maintaining bedrock protections for clean air and clean water.
Since the passage of the CHIPS and Science Act, more than $102 billion in private investment from more than 40 semiconductor industry projects have been announced in Arizona.
