Amkor’s $12 Billion Peoria Expansion Pushes Arizona Deeper Into the Semiconductor Value Chain

By Kyle Macdonald, COO of Silicon Oasis

Arizona’s semiconductor buildout just became materially larger.

Amkor Technology announced Phase 2 of its advanced packaging and test campus in Peoria, increasing the project’s planned investment to approximately $12 billion. The new phase is expected to add 60,000 square meters of cleanroom capacity to the 33,000 square meters planned for Phase 1, bringing the campus to roughly 93,000 square meters in total.

The expansion is being driven by customer commitments that have already exceeded the capacity planned for the first phase. Together, the two phases are expected to support more than 3,500 Arizona-based employees, with Phase 2 construction anticipated to begin in late 2027 and finish by the end of 2029.

That matters because the semiconductor story is no longer just about fabs.

Advanced packaging is where increasingly complex chips are assembled, connected and tested. As AI systems require denser architectures and tighter integration between processors, memory and other components, packaging has become a critical part of semiconductor performance.

Arizona is now building meaningful scale on both sides of that equation. TSMC and Intel anchor leading-edge wafer fabrication, while Amkor is building high-volume domestic advanced packaging capacity in Peoria.

That combination strengthens the state’s position in a way that is difficult to replicate. A semiconductor ecosystem becomes more durable when manufacturing, packaging, testing, suppliers, workforce and research begin clustering in the same geography.

That is the larger Silicon Oasis story. Arizona is moving from hosting major chip projects to assembling more of the semiconductor value chain itself.

Article of Reference:
https://www.gpec.org/news/press-releases/amkor-technology-expands-peoria-investment-12-billion/