Amkor Announces $12 Billion Arizona Campus Expansion for Advanced Semiconductor Packaging
Amkor Technology has announced Phase II of its advanced semiconductor packaging and testing campus in Peoria, Arizona, bringing total cumulative investment to $12 billion. The expansion will add 60,000 square meters of cleanroom space, with construction scheduled between late 2027 and late 2029. The project strengthens the US domestic semiconductor supply chain by providing onshore advanced packaging capacity near major fabs like TSMC. This helps address critical packaging bottlenecks essential for manufacturing next-generation AI accelerators and high-performance chips. Phase II was launched after customer demand quickly surpassed the 33,000-square-meter cleanroom capacity of Phase I. The combined 170-acre campus is expected to create over 3,500 jobs and builds upon strategic agreements Amkor recently formed with Nvidia and TSMC.
## BACKGROUND
OSAT (Outsourced Semiconductor Assembly and Test) providers handle the backend manufacturing process by encapsulating fabricated silicon wafers and testing finished microchips. Advanced packaging integrates multiple silicon dies or chiplets into a single package, enabling higher performance and efficiency required by modern AI workloads.