Amkor Technology has entered into a preliminary non-binding agreement with the US Department of Commerce to potentially receive $600 million in grants and loans through the CHIPS and Science Act. This funding will support Amkor’s plans to construct its first domestic outsourced semiconductor assembly and test (OSAT) facility in Peoria, Arizona. The company anticipates investing around $2 billion in this project, which is expected to create 2,000 jobs upon completion. Once operational, this facility will be the largest advanced packaging and testing center for outsourced services within the United States.
The terms of this agreement include up to $400 million in direct funding as well as access to an additional $200 million through proposed loans. In addition, Amkor intends on utilizing the Investment Tax Credit offered by the Department of Treasury for qualified capital expenditures at a potential rate of 25%.
