Amkor Technology is expanding its advanced packaging and testing plant in Peoria, increasing the planned investment in the West Valley site by $5 billion and almost tripling the size of its cleanroom facilities.
In a news release, company officials attributed the growth to high customer demand, which exceeded the roughly 355,000 square-foot cleanroom space planned in the first phase of the massive project. The total cleanroom space — a controlled environment for sensitive manufacturing or testing — is now planned at more than a million square feet.
Construction on the new phase is expected to start next year and wrap up by 2029.
"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," said Kevin Engle, Amkor's president and CEO, in a statement.
The announcement from the chip packaging manufacturer comes a little under a year after the company broke ground on the site at the Peoria Innovation Hub. Earlier this year, the company acquired an additional 67 acres adjacent to its 104-acre property. That's roughly the size of 130 football fields.
The project started with a $2 billion planned initial investment before growing to $7 billion and now $12 billion.
Amkor's announcement comes after two other major wins in the Arizona semiconductor world. Taiwan Semiconductor Manufacturing Co. announced in July it would invest an additional $100 billion in Arizona, and SEMICON West, an annual industry conference, announced it would make Phoenix its long-term home starting in 2027. Phoenix first hosted the conference in 2025 after it had spent years in the Bay Area.
Alaina Mencinger covers energy, tech and utilities. Reach her at Alaina.Mencinger@usatodayco.com.
This article originally appeared on Arizona Republic: Amkor boosts Peoria chip project to $12 billion
