Amkor Technology, Inc. (Arizona)

Project Summary

The U.S. Department of Commerce awarded Amkor Technology Arizona, Inc., a subsidiary of Amkor Technology, Inc., up to $407 million in direct funding to support the construction of a new advanced packaging and test facility. Upon completion, the facility is expected to produce approximately 14,500 wafers per month and 3,700,000 units per month processed through its assembly and test equipment in Peoria, Arizona. 

Economic and National Security Impact

The Department’s investment in Amkor, the largest U.S.-based outsourced semiconductor assembly and test company (OSAT), will strengthen resilience in key advanced packaging technologies, which will advance U.S. economic and national security by ensuring a reliable domestic advanced packaging ecosystem, supporting leading-edge clusters, and helping meet the growing demand for AI chips.

Developing an advanced packaging ecosystem is necessary to sustain U.S. global competitiveness and achieve supply chain security and resilience, and Amkor is regarded as one of the global leaders in advanced packaging technology.

Amkor’s advanced packaging and test facility in Arizona is expected to utilize the most advanced technology such as 2.5D technology and other next generation technologies. The company’s 2.5D technology is foundational for AI and high-performance computing applications as it is the final step in the manufacturing of graphic processing units (“GPUs”) and other AI chips. A lack of 2.5D technology capacity has been a significant chokepoint in the semiconductor industry’s ability to meet the rapidly increasing demand for generative AI products and services.

As a result of the direct CHIPS funding, the U.S. will significantly expand domestic capacity for this critical piece of the semiconductor supply chain, further strengthening U.S. technology leadership.

Workforce and Community Impact

Amkor’s facility is expected to support approximately 2,000 manufacturing jobs and, at the peak of construction, more than 2,000 construction jobs.

To recruit, train, and retain the workforce needed for these projects, Amkor will implement a robust workforce strategy informed by the Biden-Harris Administration’s Good Jobs Principles and will receive up to $7 million in dedicated CHIPS funding to implement workforce initiatives including worker recruitment and training. Amkor has pledged to partner with a workforce intermediary to help mobilize the regional workforce ecosystems necessary for supporting both the construction and facility workforces, and plan to enter into an agreement with Arizona State University to serve as their intermediary.

To advance its manufacturing workforce efforts:  

• Amkor will invest at least $5 million in support of training new hires and in support of collaborations with education partners.
• Amkor will develop industry-specific curriculum development with Western Maricopa County Education Center (WestMEC) and other Career Technical Education Districts to offer Career and Technical Education (CTE) programs to local high schools and adult learners.
• Amkor will develop a technician apprenticeship program in partnership with Maricopa County Community College District (MCCCD).
• Amkor will review and develop classes as needed with Arizona State University (ASU), Purdue University, and others as well as co-develop and participate in career awareness for students at these institutions.
• Amkor will expand on their existing internship program with tracks for undergraduate students and graduate students with assigned mentors to coordinate projects with student advisors.
• Amkor will invest at least $10 million in the local community over the next six years, including in workforce development, transportation support, K-12 curriculum development, and partnership with the Peoria Unified School District on semiconductor and microelectronics STEM programs.

To advance its construction workforce efforts:

• Amkor has committed to undertake efforts to achieve a registered apprenticeship utilization rate of 15% on the construction sites. 
• Amkor will expand access and services for construction workers by undertaking efforts to: 
  • Maintain or enter into bids from contractors that make financial contributions to Registered Apprenticeship Programs, and encourage partnerships with pre-apprenticeship programs that support individuals without access to or familiarity with such Registered Apprenticeship Programs;  
  • Work with contractors to identify and recruit candidates from economically disadvantaged populations; and
  • Work with contractors to provide wraparound services and benefits to employees such as personal protective equipment, health and safety services, safety events, on-site amenities, and housing services.

Environmental and Worker Safety Commitments

In connection with the CHIPS award, the Department is requiring Amkor to commit to the following environmental responsibility and worker safety measures in its operations. As is required for all CHIPS projects, the Amkor projects will comply with all applicable environmental laws, including the Clean Water Act, Clean Air Act, Endangered Species Protection Act, and the Resource Conservation and Recovery Act. 

In connection with the CHIPS award, Amkor is making the following environmental commitments:

• Net-Zero Greenhouse Gas Emissions Abatement: By 2050, Amkor will undertake efforts to achieve net-zero greenhouse gas emissions, including from the project. This includes efforts to procure and install greenhouse gas (GHG) emission abatement equipment by the start of commercial operations and to evaluate semiconductor manufacturing process improvements and source reductions and/or use of alternative or substitute chemicals. 
• Water Use Reduction: By 2030, Amkor will undertake efforts to reduce water intensity by 20% by 2030.
• Waste Reduction: By 2030, Amkor will undertake efforts to reduce waste generation intensity by 20%.
• PFAS Management: Amkor will undertake efforts to identify PFAS containing waste through wastewater sampling at various locations within the fabrication area. Additionally, Amkor will monitor changes to and comply with applicable law regarding the disposal of waste containing PFAS generated at the project facility.

Amkor has also committed to the following worker safety measures: 

• Worker Safety Committee: Amkor will establish or maintain a workplace safety committee comprised of workers and management that meets regularly and is authorized to address any worker health and safety concerns.
• Adoption of Protective Occupational Exposure Limits: Amkor will adopt Occupational Exposure Levels (OELs) established by the American Conference of Governmental Industrial Hygienists.
• Equipment Environmental, Health, and Safety Guidelines: Amkor will ensure that semiconductor manufacturing equipment is procured, installed, and commissioned in accordance with SEMI S2 – Environmental, Health, and Safety Guideline for Semiconductor Manufacturing Equipment, or other equally protective internationally recognized safety certifications.

Financial and Commercial Terms

As stated in the CHIPS Notice of Funding Opportunity (NOFO) for Commercial Fabrication Facilities, CHIPS for America will disburse direct funding to the company for capital expenditures spent on the projects based on the completion of construction, technology, production, and commercial milestones. The CHIPS Program Office will track the performance of each CHIPS Incentives Award via financial and programmatic reports, in accordance with the award terms and conditions.

All CHIPS funding recipients are required to adhere to restrictions pursuant to the CHIPS Act and NOFO regarding stock buybacks and national security guardrails, which limit the sharing of intellectual property.  Amkor has agreed to certain restrictions on dividend payments and to not engage in any stock buybacks for a period of five years.