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Amkor Signs Preliminary Memorandum of Terms with US Department of Commerce for Arizona Advanced Packaging and Test Facility
TEMPE, Ariz.--(BUSINESS WIRE)-- Amkor Technology, Inc. (Nasdaq: AMKR), a leading provider of semiconductor packaging and test services, announced today it
About this update from Amkor Technology, Inc.
[{"type":"text","content":" TEMPE, Ariz.--(BUSINESS WIRE)--\nAmkor Technology, Inc. (Nasdaq: AMKR), a leading provider of semiconductor packaging and test services, announced today it has signed a non-binding preliminary memorandum of terms with the US Department of Commerce to receive proposed funding as part of the CHIPS and Science Act.\n\n\nAmkor announced in November 2023 its plans to build its first domestic OSAT (outsourced semiconductor assembly and test) facility in Peoria, Arizona. Amkor projects to invest approximately $2 billion and employ approximately 2,000 people at the new facility. Upon completion, this will be the largest outsourced advanced packaging and test facility in the United States.\n\n\nThe terms include:\n\n\n▶ Up to $400 million in proposed direct funding\n▶ Access to $200 million in proposed loans\n\n\nAmkor plans to take advantage of the Department of the Treasury’s Investment Tax Credit, which is expected to be up to 25% of qualified capital expenditures.\n\n\nAmkor’s Arizona facility is an essential part to establishing a robust and resilient domestic semiconductor supply chain. Establishing an advanced packaging and test facility in Arizona allows Amkor to leverage its status as a strategic manufacturing partner for the world's leading semiconductor companies, foundries, and OEMs, while playing a significant role in ensuring competitive semiconductor manufacturing innovation in the US.\n\n\nCommerce Secretary Gina M. Raimondo identified advanced packaging as a major area of focus for the US government’s effort to rebuild American semiconductor manufacturing. The Commerce Department emphasized that developing robust advanced packaging manufacturing capacity and capability is a key priority and essential to the success of the CHIPS program.\n\n\nAmkor has secured approximately 55 acres with intent to build a state-of-the-art manufacturing campus with more than 500,000 square feet of clean room space. The first phase of the manufacturing facility is targeted to be ready for production within three years.\n\n\nAmkor and TSMC have been working closely to provide high volume, leading-edge technologies for advanced packaging and testing of semiconductors to support critical markets such as high-performance computing, automotive, and communications. The companies’ shared vision is to enable seamless technology alignment for custo...