American semiconductor packaging and test services company Amkor Technology has confirmed its plans to establish an advanced semiconductor packaging and test facility in Peoria, Arizona, US.

The company will invest approximately $2bn for the completion of this entire project.

Associated work will provide employment to roughly 2,000 people at the Peoria site.

The company has secured approximately 55 acres of land for setting up the new manufacturing campus, which is projected to have more than 500,000ft² of clean room space.

Amkor anticipates that the initial phase of the plant will be ready for production in the next two to three years.

Once operational, the factory will allow Amkor to provide high-volume technologies for advanced semiconductor packaging and testing that will support key markets, including computing, automotive, and communications.

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By GlobalData

Technology giant Apple will be Amkor’s first client to leverage the manufacturing capabilities of the new facility.

In a statement, Apple COO Jeff Williams said: “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.”

Amkor is claimed to be the only US-headquartered outsourced semiconductor assembly and test service provider and its new facility will be the largest outsourced advanced packaging facility in the country.

Amkor has also applied for the US government’s CHIPS funding, which aims to strengthen the country’s domestic competitiveness and national security in the semiconductor industry.

Under this $52.7bn programme, the federal government will award $39bn to various US companies via competitive grants to support the construction, expansion, and modernisation of their facilities and equipment.