Amkor Technology increases Peoria investment to $7 billion 

Driving by the Loop 303 and Lake Pleasant Parkway, it’s easy to overlook the arid landscape just north of the freeway. But in a few short years, a state-of-the-art outsourced semiconductor advanced packaging and testing campus will emerge from this patch of desert. On Oct. 6, Amkor Technology announced an expansion during the groundbreaking of its new facility, now set to bring $7 billion in investment to Peoria — a 250% increase from the company’s original plans.  

The additional $5 billion will be used for additional cleanroom space and a second greenfield packaging and test facility, further strengthening Arizona’s growing semiconductor ecosystem. Once both phases are completed, the campus will have more than 750,000 square feet of cleanroom space and create upward of 3,000 high-paying jobs.  

“This is a truly historic milestone, not only for Amkor Technology, but for the future of the semiconductor industry in the U.S.,” says Susan Kim, chairman of the Amkor Board of Directors. “The pandemic revealed the vulnerabilities of global supply chains … highlighting the need for a complete semiconductor supply chain in America. We are proud to be part of the solution and proud to be doing it right here in Arizona.” 

Since its founding nearly six decades ago, Amkor’s manufacturing footprint has always existed outside the U.S. — something Kim says changes with the construction of the Peoria campus.  

Giel Rutten, CEO of Amkor Technology, explains that the increased investment came in response to growing demand for semiconductors as AI usage is expected to proliferate over the coming decade.  

“Artificial intelligence will transform how we live in an evolving digital economy that’s driven by innovations in high-performance computing and global communications,” he continues. “These breakthroughs will be made possible by the advanced packaging happening right here in Arizona.”  

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During her remarks, Gov. Katie Hobbs highlighted Amkor’s partnership with the state since moving its headquarters to Arizona in 2004.  

“Amkor’s $7 billion facility will be the largest outsourced packaging plant in North America, expected to bring 3,000 jobs to Peoria,” she continues. “It will enable us to test and package more chips that support critical technologies, putting Arizona on the leading edge of the AI revolution, and will continue to spur more investment and development here in the West Valley.” 

Even though the growing semiconductor cluster is a boon for the state, Gov. Hobbs underscores that the effects will be felt beyond its borders.  

“This is not just a win for Arizona — it’s a win for America,” she says. “It advances our national security and drives technology. It’s not just beneficial for businesses but for families too. Generational careers will be made here. This investment truly delivers on the Arizona promise of opportunity, security and freedom.” 

Today, the future home of Amkor’s new campus is surrounded by empty desert, but it won’t stay that way for long. The Peoria City Council recognized that 75% of the municipality’s remaining vacant land is owned by Arizona State Land Department (ASLD), which is why a deal was inked between the two entities in 2024 allowing the city to lead planning efforts on 7,000 acres of undeveloped state trust land.

By putting these parcels to a higher and better use, land values will increase, benefitting Arizona’s public education system to the tune of over $1 billion. New housing is planned for the area — including single-family and higher density residential projects. The city will invest $140 million to build roads and other infrastructure, then receive up to $500 million in reimbursements — improvements that otherwise would be funded by taxpayers in Peoria.  

Peoria Mayor Jason Beck explains that putting together an economic plan for the city was his top priority when he assumed the office in January 2023.  

“As my wife will attest, I’m very impatient. I wanted to drive the city forward right away. In my first meetings with city staff and council members I said, ‘We’re going to build this thing called the Peoria Innovation Core and do a state land deal,’” he says. “This 7,000 acres is the future not only for the City of Peoria but the Northwest Valley — if not Arizona itself.”  

Gov. Hobbs adds that the growth happening across Arizona shouldn’t be chalked up to good luck — it’s the hard-earned results of meticulous planning and determination. 

“For years, we’ve been building an impressive semiconductor ecosystem. We’ve created a formula for success with partnerships at every level of government, working with industry, education and workforce partners,” she concludes. “Amkor’s $7 billion facility takes our semiconductor industry to the next level.”