According to the latest news, the United States Department of Commerce announced that it has signed a preliminary non-binding memorandum with Amkor, under which the United States government will provide up to $400 million in direct funding and $200 million in loans to Amkor under the CHIPS and Science Act. The funds will be used to support the construction of Amkor's assembly and test facility in Peoria, Arizona.
The project will provide complete end-to-end advanced packaging for the world's most advanced semiconductors for high-performance computing, artificial intelligence, communications, and automotive end markets. Once fully operational, Amkor will package and test millions of cutting-edge chips for autonomous vehicles, 5G/6G smartphones, and large data centers.
The project was officially announced at the end of 2023 and aims to be in production within 3 years and create 2,000 jobs. With 55 acres (approximately 22.28 hectares) and 500,000 square feet (approximately 46,451.52 square meters) of clean rooms, Amkor's Arizona facility will be the largest outsourced advanced assembly and test facility in the United States.
Giel Rutten, President and CEO of Amkor, said, "Amkor is proud to be an advanced outsourced advanced packaging and test company headquartered in the United States. Today's announcement underscores our commitment to developing the domestic semiconductor ecosystem in United States. Amkor's Arizona facility will enable it to support the growing semiconductor manufacturing industry while creating 2,000 good jobs and providing advanced packaging and test capabilities to customers in the United States.
Picture: Amkor received up to $400 million in United States funding to build a chip packaging factory (Source: Taipei Times)
In addition, Apple has announced that it will be the first and largest customer for Amkor's new manufacturing and packaging facility in Peoria, Arizona. Amkor will package some of Apple's chips, which will be produced at a nearby TSMC factory. Jeff Williams, Apple's president of operations, said, "Apple is deeply committed to the future of manufacturing in the United States, and we will continue to expand our investments in the United States. Amkor plans to begin limited production at the plant in the next two to three years and has applied for CHIPS funding from the United States federal government to help fund the project.
Amkor's new facility near Peoria, Arizona, will be the largest of its kind in the United States. The company has secured 55 acres of land for the campus, which will include more than 500,000 square feet of cleanroom space. Amkor has worked extensively with Apple on the strategic vision and initial manufacturing capabilities of the Peoria facility, which will package and test chips made at a nearby TSMC facility for Apple.
Amkor's funding is not only a recognition of its technology and market potential, but also an important step by the United States government to promote domestic semiconductor manufacturing capacity. With the construction of Amkor's Arizona facility, it is expected to significantly enhance United States' position in the global semiconductor supply chain and create significant jobs in related industries. The successful implementation of this project will further strengthen Amkor's leadership in semiconductor assembly and test and lay a solid foundation for the future growth of the semiconductor industry in United States.
