$407 Million In CHIPS Act Funding

The semiconductor industry in Greater Phoenix just got a big boost. Amkor Technology Inc., based in Tempe, Arizona, has finalized $407 million in CHIPS Act funding for a cutting-edge semiconductor packaging and testing plant in Peoria. This massive project aims to strengthen America’s semiconductor supply chain while creating thousands of jobs. Here’s what you need to know about this groundbreaking development.

CHIPS Act Funds Fuel Amkor’s Expansion

Amkor Technology’s project marks a milestone in bolstering the U.S. semiconductor industry. The company’s Peoria facility will play a critical role in the domestic packaging of chips, reducing reliance on overseas facilities.

• Total funding secured: $407 million in grants.
• Initial funding offer: $400 million in grants and $200 million in loans (Amkor declined the loan).
• Job creation: 2,000 permanent roles and 2,000 construction jobs.
• Facility size: 500,000 square feet.
• Investment size: $2 billion from Amkor.

The funds will be disbursed in stages, linked to the project’s progress. Once operational, the facility will package and test chips for top-tier clients like TSMC, GlobalFoundries, and Apple.

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The Peoria Project: A High-Tech Hub

Located at Five North in the Vistancia community, this facility will leverage some of the world’s most advanced packaging technologies, cementing the U.S. as a leader in semiconductor innovation.

• Location: Five North at Vistancia, northwest Peoria.
• Land acquisition: 56 acres, with 50 acres donated by Peoria.
• Timeline:
  • Groundbreaking: September 2025.
  • First phase completion: September 2027.
  • Second phase: September 2034.

Peoria’s strategic location and community support have made it an ideal choice for this high-profile project.

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Arizona’s Role In The Semiconductor Boom

Arizona continues to attract significant CHIPS Act funding and semiconductor investments, reinforcing its status as a national tech powerhouse.

• Total CHIPS Act awards to Arizona: At least $15 billion.
• Major projects:
  • TSMC: $65 billion complex.
  • Intel: $20 billion expansion.
• CHIPS Act totals so far: $33 billion awarded across 21 states.

These projects aim to create a resilient supply chain while supporting industries like AI and high-performance computing.

Economic & Technological Impact

Amkor’s Peoria facility is expected to have wide-reaching effects on the local and national economy.

• Supply chain resilience: Reduces dependency on overseas packaging.
• Industry support: Advances in AI, computing, and global competitiveness.
• Revenue growth: Amkor’s Q3 revenue reached $1.86 billion, a year-over-year increase.

This development signals a major step toward semiconductor independence and positions Greater Phoenix as a global tech leader.

The CHIPS Act funding for Amkor is a big financial boost. Not to mention a commitment to the future of innovation, jobs, and security in the U.S. The Peoria project is just the beginning of what could become a transformative era for the semiconductor industry.

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