With shovels in the dirt, Tempe, Arizona-based semiconductor firm Amkor broke ground on a massive, $7 billion outsourced semiconductor advanced packaging and test campus in Peoria, Arizona, according to a Monday news release.
Originally, the facility was to be located at a 56-acre parcel within the Five North mixed-use development at Vistancia, also located in Peoria. Now, the facility will be located on a 104-acre site at a tech hub known as the Peoria Innovation Core due to the larger project scope.
The investment is $5 billion more than Amkor’s prior commitment of $2 billion for the facility and also involved a land parcel swap. The expanded spending includes additional cleanroom space and a second greenfield packaging and test facility, which increases the influx of cash to $7 billion total across two phases, according to Amkor.
Once both phases are complete, the campus will offer over 750,000 square feet of cleanroom space, and will support customers such as Apple and Nvidia, according to the news release.
Funding for the project comes from state and local governments, alongside the Advanced Manufacturing Investment Tax Credit and approximately $407 million from the CHIPS Act, according to an Amkor 10-Q filed for the second quarter of 2025.
The Amkor investment is yet another in a long list of semiconductor projects across Arizona, including fabs from Taiwan Semiconductor Manufacturing Co. and Nvidia.
The groundbreaking comes as the U.S. is striving to reduce its reliance on foreign semiconductors. In August, President Donald Trump announced his intention to apply 100% tariffs for semiconductor imports. Last year, the U.S. imported $22.6 billion of semiconductors, according to the Observatory of Economic Complexity analytics hub. Of that total, more than $5.6 billion in imports originated in Vietnam. Thailand and Malaysia each exported more than $3 billion worth of chips to the U.S.
“Arizona offers the right mix of talent, infrastructure, and industry presence, and we’re proud to deepen our roots here,” said Giel Rutten, Amkor’s president and CEO, in the news release.
Construction of the first manufacturing facility on the campus is expected to be completed in mid-2027, per the release, with production beginning in early 2028.
