Arizona will benefit from Apple’s $100B investment in domestic manufacturing. Here’s how

Apple Inc. plans to invest in Amkor Technology Inc.’s proposed semiconductor packaging plant in Peoria, marking the facility’s first customer ahead of its groundbreaking later this year.

The announcement was part of a $100 billion investment in domestic manufacturing by the tech giant, which faces pressure from President Donald Trump to shift its supply chain to home soil.

The company said the investment — part of what it calls its “American Manufacturing Program” — is intended to strengthen U.S. manufacturing of critical electronics components. Its leaders are also hoping the program will incentivize global companies to bring manufacturing operations stateside.

Apple didn’t disclose exactly how much money it would put into Amkor’s facility, but the number is likely in the billions. It said it would split its investment between Amkor and eight other companies, including Corning Inc., Samsung Electronics Co. and Broadcom Inc.

Amkor said its plant will package silicon chips to be used in iPhones worldwide. Those chips will come from Taiwan Semiconductor Manufacturing Co.’s nearby campus in north Phoenix. Apple has long been among its largest customers.

Meanwhile, Applied Materials announced that it would invest $200 million to create a new factory in Chandler. That company supplies Apple. It said the new plant would manufacture chip-making equipment. It would then send those tools to Texas Instruments — another supplier — to make semiconductors used in Apple products.

What does Apple’s investment mean for Arizona?

Arizona is the center of the domestic semiconductor manufacturing boom.

Two of the world’s largest chipmakers — TSMC and Intel — manufacture advanced computer chips in the Valley. Suppliers are increasingly popping up to serve them.

Amkor’s proposed facility will be the largest outsourced packaging plant in the country once it is built. It will package and test millions of chips from TSMC, and is expected to create thousands of new jobs. Plus, it is expected to spur further development in the West Valley, which is already home to a host of smaller suppliers.

Apple’s investment contributes to the stability of the project — and potentially draws additional growth in the region, like with Applied Materials.