Arizona semiconductor company Amkor to get $400M in pending deal with Biden administration

PHOENIX — An Arizona tech company is set to create 2,000 jobs through a partnership with the U.S. government, officials announced on Friday.

An agreement between the U.S. Department of Commerce and Tempe-based Amkor Technologies is paving the way for the company to receive up to $400 million in direct funding through the CHIPS and Science Act.

The parties signed the first stage of documentation to secure those federal funds for the construction of a manufacturing plant in Peoria, according to a Commerce Department news release.

What will the Peoria semiconductor plant do?

The plant will provide end-to-end packaging for advanced semiconductors. The terms of the agreement includes access to $200 million in proposed loans, according to an Amkor announcement. Once it’s completed, it will be the biggest outsourced advanced packaging and test facility in the U.S.

Amkor’s announcement said it has been working closely with Taiwan Semiconductor Manufacturing Company to support semiconductor testing and packaging to support various industries.

The 500,000-square-foot manufacturing campus will be ready for the first phase within three years, Amkor said.

In addition to creating jobs, the plant would also improve economic and national security, according to 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 said in the 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.”

U.S. Democratic Rep. Greg Stanton expressed his excitement over the news in a Friday news 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 U.S.,” Stanton said. “Soon, microchips manufactured in Arizona will be packaged in Arizona — making our entire semiconductor supply chain more efficient and resilient, while creating good-paying jobs here in the state.”