Amkor Technology's latest Arizona expansion underscores how advanced packaging capacity is becoming a strategic issue for the US semiconductor supply chain. The larger campus aims to meet rising demand for advanced packaging, strengthen domestic production, and support next-generation devices worldwide.
Amkor Technology said on September 8 that it will add a second phase to its advanced packaging and test campus in Arizona after customer commitments exceeded the cleanroom capacity planned for phase 1.
The phase 2 expansion is expected to add 60,000 square meters of cleanroom space, bringing the campus to about 93,000 square meters in total. The planned investment for the project now stands at approximately US$12 billion, up from the project's previous planned investment.
Amkor said the Arizona site was designed as a multi-phase project from the outset and includes wafer bump, probe, assembly, and test capabilities. The company said the campus is intended to support long-term demand for advanced semiconductor packaging and test services in the US.
The expansion is also expected to bring the project's workforce to more than 3,500 Arizona-based employees when phase 1 and phase 2 are considered together.
"This next phase reflects the confidence our customers have placed in Amkor, the critical role advanced packaging plays in enabling the future of semiconductor innovation, and the strategic importance of our Arizona campus," Kevin Engel, the company's president and chief executive officer, said in a statement.
He added that as chip architectures become more complex, customers need a partner that can deliver at scale, and having that capacity in the US is critical.
Amkor said its Arizona campus is the first US outsourced semiconductor assembly and test (OSAT) production site for high-volume advanced packaging, giving customers a domestic turnkey manufacturing platform.
Construction of phase 2 is expected to begin in late 2027, with completion targeted for the end of 2029. The campus spans 170 acres, leaving room for additional expansion if customer demand requires it.
Amkor Technology is the world's largest US-headquartered outsourced semiconductor assembly and test (OSAT) company, with operations serving smartphones, data centers, artificial intelligence, automobiles, and wearables.
Article edited by Ysi Chen
