Amkor breaks ground on $7 billion chip packaging campus in Arizona

TEMPE, Ariz. - Amkor Technology, Inc. (NASDAQ:AMKR), a prominent player in the semiconductor industry with a market capitalization of $7.57 billion, broke ground on an expanded semiconductor packaging and test campus in Arizona, increasing its planned investment to $7 billion across two phases, the company announced Monday. The company’s stock has shown remarkable momentum, delivering a nearly 99% return over the past six months and currently trading near its 52-week high of $31.72.

The project will create the first high-volume advanced semiconductor packaging facility in the United States, with construction of the initial manufacturing facility expected to be completed by mid-2027 and production beginning in early 2028. According to InvestingPro analysis, Amkor maintains a strong financial position with a healthy current ratio of 1.89, indicating sufficient liquidity to support this significant expansion.

Upon completion of both phases, the campus will feature over 750,000 square feet of cleanroom space and create approximately 3,000 jobs. The facilities will be located in Peoria, Arizona, within the state’s growing high-tech corridor.

"We’re building a facility to meet our customers’ most advanced needs that will help shape the future of semiconductor manufacturing in the United States," said Giel Rutten, Amkor’s president and chief executive officer.

The expanded investment includes additional cleanroom space and a second greenfield packaging and test facility, increasing the original investment by more than $5 billion. The campus will support key customers including Apple (NASDAQ:AAPL) and NVIDIA (NASDAQ:NVDA), and will complement Taiwan Semiconductor Manufacturing Company’s (NYSE:TSM) front-end wafer fabrication for end-to-end semiconductor manufacturing.

The project is supported by the CHIPS for America Program, the Advanced Manufacturing Investment Tax Credit, and state and local governments, according to the company’s press release statement.

The facility will focus on advanced packaging and testing technologies for artificial intelligence, high performance computing, mobile communications, and automotive applications. It will incorporate smart factory technologies and scalable production lines to meet evolving market demands.

Amkor Technology, headquartered in the U.S., provides outsourced semiconductor assembly and test services to semiconductor and electronics manufacturers worldwide. The company maintains a moderate debt level with a debt-to-equity ratio of 0.43 and has received an overall "GOOD" financial health score from InvestingPro, which offers comprehensive analysis of over 1,400 US stocks through its detailed Pro Research Reports, providing investors with actionable intelligence for smarter investment decisions in the semiconductor sector.

In other recent news, Amkor Technology has announced the completion of a $500 million notes offering, issuing 5.875% Senior Notes due 2033. The company plans to redeem its outstanding $400 million 6.625% Senior Notes due 2027, effective October 2025. Additionally, Amkor Technology has declared a quarterly cash dividend of $0.08269 per share, payable in September 2025. DA Davidson has reiterated its Buy rating on Amkor Technology, citing confidence despite mixed third-quarter results where revenue exceeded expectations but margins led to an earnings miss. KeyBanc, on the other hand, maintained a Sector Weight rating, acknowledging positive sales trends in the second-quarter earnings report, which included a one-time benefit. Amkor Technology also revealed plans for a $400 million senior notes offering to redeem its 2027 notes, using proceeds and cash on hand for this purpose. These developments reflect Amkor Technology’s ongoing financial strategies and market evaluations.

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