Amkor Technology has commenced construction on a semiconductor advanced packaging and test campus in Arizona, US, expanding its planned investment in the project to $7bn over two phases.

The company is increasing its commitment by more than $5bn. This expanded investment will be allocated towards creating extra cleanroom space and construction on a second greenfield packaging and test facility.

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The overall development across both phases will provide more than 750,000ft² of cleanroom capacity.

Amkor expects to complete construction of the first manufacturing plant in mid-2027, with production starting in early 2028.

Amkor president and CEO Giel Rutten said: “This groundbreaking represents a bold step in Amkor’s long-term strategy for growth and innovation.

“We’re building a facility to meet our customers’ most advanced needs that will help shape the future of semiconductor manufacturing in the US.”

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Located in Arizona’s high-tech corridor, the site will focus on advanced packaging and testing, forming part of a wider effort to develop US semiconductor infrastructure.

The campus is designed to incorporate smart factory technologies and scalable production lines tailored to requirements in AI, computing, mobile communications, and automotive industries.

In addition, the new facilities are expected to complement TSMC’s wafer manufacturing operations by providing downstream processing for complete semiconductor production.

The facilities are intended to serve major customers such as Apple and Nvidia.

Nvidia founder and CEO Jensen Huang said: “AI has ignited a new industrial revolution — and with it, the chance to reindustrialise America. Amkor’s new Arizona facility is a defining milestone in bringing this capability home. 

“Together, we are rebuilding the supply chain — onshoring the AI technology stack that turns energy into intelligence and secures America’s leadership for the AI century.”

Amkor’s expanded investment benefits from support through the Trump Administration’s CHIPS for America programme, the Advanced Manufacturing Investment Tax Credit initiative, and contributions from state and local authorities.