ARIZONA NEWS

$407 million CHIPS Act package finalized for Arizona semiconductor packaging company

Dec 25, 2024, 5:45 AM | Updated: Dec 26, 2024, 8:42 am

PHOENIX — An Arizona-based semiconductor manufacturer is getting total of $407 million to fund a new Peoria facility, according to officials.

The finalized funding to support Amkor Technology Arizona, Inc. comes from the federal government via the CHIPS and Science Act.

“This finalized agreement with Amkor brings another critical piece of the microchip supply chain back to our shores and cements Arizona’s position as a global leader in microchip packaging and innovation,” Arizona Sen. Mark Kelly said in a news release from last week.

The company is a subsidiary of Amkor Technology, Inc., the largest outsourced semiconductor assembly and test company based in the U.S.

What will Arizona-based semiconductor manufacturer do?

The award of $407 million will directly support the company’s investment of around $2 billion in creating an advanced packaging and test facility in Peoria.

Amkor Technology Arizona’s future facility is expected to create more than 4,000 jobs in Arizona, according to the U.S. Department of Commerce.

Half of those jobs will be in manufacturing, while the others reflect the construction jobs that will be filled at the peak of the facility’s construction.

How will Arizona-based semiconductor manufacturer get the money?

The U.S. Department of Commerce will release the funds as the company meets different milestones in its Peoria facility construction project.

“With Amkor’s cutting-edge facility in Peoria, we’re not only creating thousands of good-paying jobs but also ensuring that critical technologies like artificial intelligence and autonomous vehicles are powered by chips made and packaged right here in the U.S.,” Kelly said.

He sees the upcoming facility as a way to establish Arizona as a domestic manufacturing hub for semiconductors, which are used used in chips that make computers work, along with cellphones, fighter jets, self-driving cars, artificial intelligence and even ovens.

Investments like this put Arizona in the position to emerge as a global hub for research, development, testing, manufacturing and packaging of micro electrics, he added.

“These investments are a testament to the CHIPS Act’s success in strengthening our supply chains, boosting national security, and solidifying America’s leadership in the global semiconductor industry,” Kelly said.

We want to hear from you.

Have a story idea or tip? Pass it along to the KTAR News team here.

Arizona News

fentanyl pills, fentanyl bust Phoenix...

KTAR.com

Weekend Wrap: Here are the biggest Phoenix news stories from Feb. 7-9

Here are some of the top Valley news stories from Feb. 7-9, including a Phoenix man being pulled over with more than 100,000 fentanyl pills.

10 hours ago

Economists foresee labor shortages in construction and agriculture as a result of President Donald ...

Matthew DeWees and Katrina Michalak/Cronkite News

Donald Trump’s mass deportations could mean higher costs and labor shortages in Arizona

Deportations ordered by President Trump could hit Arizona’s agriculture and construction sectors hard, pushing up prices for shoppers.

14 hours ago

Immigration Arizona criminal charges 565 people USAO...

Payne Moses

More than 500 charged with immigration-related crime in Arizona over recent 2-week period

From Jan. 21-Feb. 3, a total of 565 people were charged with illegal immigration activity by the U.S. Attorney's Office for the District of Arizona.

17 hours ago

Two Valley freeway ramps will be closed for the next two months....

Kevin Stone

2 Valley on-ramps closing for 2 months as part of freeway improvement projects

A couple of metro Phoenix freeway ramps are closing for the next two months as part of ongoing improvement projects.

21 hours ago

Honeywell Aerospace...

Collin Huguley and Jeff Gifford/Phoenix Business Journal

Phoenix-based Honeywell Aerospace to go its own way amid company split

Phoenix-based Honeywell Aerospace Technologies is going to become a separate entity now that Honeywell International Inc. plans to follow through with a major shake-up.

21 hours ago

fatal shooting southeast Phoenix one man dead...

Payne Moses

Police investigating fatal shooting that left 1 man dead in southeast Phoenix

Phoenix police are investigating a fatal shooting in southeast Phoenix on Friday that left one man dead. The incident is being viewed as an act of self-defense.

1 day ago

Sponsored Articles

...

Asset Preservation Wealth & Tax

How to optimize the most money in 2024 tax returns

As tax season begins, getting your financials in order is important to maximize your tax return.

...

Bright Wealth Management

How IRAs are a helpful tool in retirement planning

When it comes to retirement planning, individual retirement accounts (IRAs) can be a great tool for income growth.

...

Fiesta Bowl Foundation

Join us for the 52nd annual Vrbo Fiesta Bowl Parade

The 52nd annual Vrbo Fiesta Bowl Parade presented by Lerner & Rowe returns on Saturday, December 28, at 10 a.m.

$407 million CHIPS Act package finalized for Arizona semiconductor packaging company