An Arizona-based tech company is set to create 2,000 jobs through a partnership with the US government, officials announced on Friday.
Tempe-based Amkor Technologies will receive up to £320 million in direct funding through the CHIPS and Science Act, following an agreement with the US Department of Commerce. This initial stage of the agreement will secure federal funds for the construction of a new manufacturing facility in Peoria, Arizona.
The plant will focus on end-to-end packaging for advanced semiconductors. As part of the agreement, Amkor will also have access to a proposed £160 million loan, according to a company announcement. Once operational, the facility will be the largest outsourced advanced packaging and testing facility in the US.
Amkor has been collaborating closely with Taiwan Semiconductor Manufacturing Company to support semiconductor testing and packaging across various industries. The 500,000 square foot manufacturing campus is expected to be ready for the first phase of operations within three years.
The plant is projected to not only create jobs but also boost economic and national security, according to US Commerce Secretary Gina Raimondo. "The leading-edge chips that will be packaged right here in Arizona are foundational to technologies of the future that will define global economic and national security for decades to come," Raimondo stated in a release. "This proposed funding would enhance our supply chain security, create thousands of jobs in Arizona, and further position the United States to out-innovate, out-build, and out-compete the rest of the world."
US Democratic Representative Greg Stanton expressed his enthusiasm about the news in a Friday release. "Arizona is continuing to lead the world in semiconductor innovation. Thanks to our CHIPS Act, Amkor is expanding their footprint with one of the first advanced packaging and testing facilities in the US," Stanton said. "Soon, microchips manufactured in Arizona will be packaged in Arizona â making our entire semiconductor supply chain more efficient and resilient, while creating good-paying jobs here in the state."
The new facility marks a significant step in bolstering the US semiconductor industry, strengthening supply chains, and creating valuable job opportunities. The CHIPS and Science Act is playing a key role in supporting this initiative, driving innovation and economic growth within the US.
