Amkor, one of the leading providers of packaging and test services for semiconductors, has announced that it is building an advanced packaging and test facility for semiconductors in Peoria, Arizona, USA. According to Amkor, once this facility opens, Apple will be its first and largest customer. At this facility, Amkor will package and test those chips for Apple that TSMC will manufacture at a nearby fabrication facility.
In the press release about the new facility, Amkor says that it has secured approximately 55 acres of land to build “a state-of-the-art manufacturing campus.” It will have 500,000 square feet of clean room space and employ around 2,000 people. According to the firm, the construction of this facility will be complete within the next 2 to 3 years.
The US government could fund Amkor for the Peoria facility
For the last few years, the US government has been trying to establish a supply chain for semiconductors in the country to increase employment, strengthen the local economy, help protect national security, and more importantly, reduce its dependence on other countries, such as China and Taiwan, for sourcing semiconductors.
As a part of that effort, the US government announced CHIPS and Science Act in 2022, which will offer “$39 billion to US companies in competitive grants to manufacturers to finance construction, expansion, and modernization of facilities and equipment.” Amkor has applied for this program to receive funds to manufacture the new facility in Peoria.
Apple applauds Amkor's move as it has vested interests
Apple sources components for its products from a lot of companies around the globe. However, it never issues a press release when one of its suppliers opens up a new facility for manufacturing components or offering services for Apple. That, surprisingly, isn’t the case with Amkor’s new packaging and test facility in Peoria. The iPhone maker has issued a press release about it. The company might have taken this step to show how important local manufacturing is for Apple and to appease the US government.
“Apple is deeply committed to the future of American manufacturing, and we’ll continue to expand our investment here in the United States. Apple silicon has unlocked new levels of performance for our users, enabling them to do things they could never do before, and we are thrilled that Apple silicon will soon be produced and packaged in Arizona,” said Apple’s chief operating officer, Jeff Williams, in the press release.
“Expansion of a US semiconductor supply chain is underway, and as the largest US-headquartered advanced packaging company, we are excited to lead the charge in bolstering America’s advanced packaging capabilities. This new US facility, in combination with our advanced facilities spanning Asia and Europe, further strengthens our broad geographic footprint, supporting global but also enabling regional supply chains,” said Amkor’s president and chief executive officer Giel Rutten.
