The U.S. Department of Commerce awarded Amkor Technology Arizona, Inc., a subsidiary of Amkor Technology, Inc., up to $407 million in direct funding under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication Facilities.
Amkor, the largest U.S.-based outsourced semiconductor assembly and test company (OSAT), develops advanced packaging technology which supports leading-edge clusters and helps meet the growing demand for AI chips. This award will directly support Amkor’s investment of approximately $2 billion in a greenfield advanced packaging and test facility in Peoria, Arizona.
The company expects the funds to create an estimated 2,000 manufacturing jobs, and, at the peak of construction, more than 2,000 construction jobs.
The award comes after the previously signed preliminary memorandum of terms, announced on July 26, 2024, and the completion of the department’s due diligence. The department will disburse the funds based on the company’s completion of project milestones.
According to the Department of Commerce, CHIPS for America has awarded over $33 billion of the over $36 billion in proposed incentives funding allocated to date. These announcements across 21 states are expected to create over 125,000 jobs.