Apple to invest billions in Amkor’s Peoria facility as part of $100B US manufacturing commitment
Story Highlights
- Apple invests $100 billion to boost U.S. manufacturing and supply chain
- Amkor’s Peoria facility to receive billions for advanced chip packaging
- Applied Materials also reveals details about Chandler investment
Apple Inc. plans to invest billions of dollars into Amkor Technology Inc.’s advanced packaging facility to be built in Peoria as part of a larger $100 billion commitment announced by the California-based tech giant Wednesday to boost its manufacturing in the United States.
Apple’s $100 billion investment will support a new American Manufacturing Program intended to strengthen the company’s supply chain and advanced manufacturing operations in the U.S. The program is also intended to incentivize global companies to manufacture critical components in the U.S., according to a company announcement.
Apple’s first AMP partners include Corning, Coherent, GlobalWafers America, Applied Materials, Texas Instruments, Samsung, GlobalFoundries, Broadcom and Tempe-based Amkor. With these new partnerships, Apple said it’s leading the creation of an “end-to-end silicon supply chain in the U.S. with partners in every key aspect of silicon production.”
Apple’s fresh investment builds upon the company’s previously announced $500 billion commitment over four years to support a new advanced manufacturing facility in Houston, a supplier academy in Michigan and a multibillion-dollar allocation to TSMC to produce advanced silicon at the company’s north Phoenix fab site, the Business Journal previously reported.
“Today, they’re producing tens of millions of chips for Apple using one of the most advanced process technologies in America,” said Apple CEO Tim Cook of TSMC’s operations in Arizona. “We’re going to keep working with our suppliers to move even more of this incredibly advanced work to America. And this year alone, American manufacturers are on track to make 19 billion chips for Apple in 24 factories across 12 different states.”
Apple already a customer of TSMC in Phoenix
Apple previously described itself as “the largest customer at TSMC’s state-of-the-art facility” in north Phoenix, where mass production of Apple chips began in January. Apple committed to sourcing chips from the Arizona TSMC factory back in 2022.
As part of its new $100 billion commitment, Apple is investing an unspecified amount in Amkor’s proposed Peoria manufacturing facility to accelerate development of its advanced packaging capabilities in the U.S. Although the company did not disclose a specific dollar amount for its Amkor investment, it amounts to billions of dollars, a White House official told the Business Journal.
Apple is expected to be Amkor’s first and largest customer and will package the tech company’s silicon chips.
Just last month, Amkor amended an existing revolving credit facility to add a $500 million tranche of loans to ensure access to capital as it prepares to break ground on its advanced packaging facility in September.
In April, Amkor said it was looking to scale up construction of its Peoria plant faster than anticipated to meet rising demand for semiconductor packaging and test services from its customers, including Taiwan Semiconductor Manufacturing Co., Global Foundries and Apple.
TSMC — also a lead customer of Amkor — completed construction of its second fab and broke ground on its third fab in April, which was months earlier than anticipated.
Applied Materials confirms Chandler investment
California-based Applied Materials Inc. also announced plans Wednesday to invest more than $200 million in Arizona “to establish a state-of-the-art facility for manufacturing critical components for semiconductor equipment,” according to an Aug. 6 announcement.
The facility will be located in Chandler and will produce semiconductor equipment components and parts, supporting the “creation of potentially 200 additional manufacturing, R&D and services jobs in the semiconductor field over a five-year period,” according to the announcement.
Applied Materials acquired the nearly 182,000-square-foot GO-AZ Ave building in Chandler on June 17 for $41.15 million, according to previous Business Journal reporting. The company on July 9 confirmed to the Business Journal that it was growing its presence in Arizona, but did not confirm the amount of its investment in the Valley or its hiring plans at the Chandler facility.
“Applied Materials’ new advanced manufacturing facility will further bolster Arizona’s robust semiconductor ecosystem and strengthen U.S. supply chain resiliency,” said Sandra Watson, President and CEO of the Arizona Commerce Authority, in an Aug. 6 statement. “Across important areas such as equipment, R&D, and workforce training, Applied has been a tremendous industry partner, and we’re grateful for their continued leadership and commitment to Arizona.”