Amkor 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.
Amkor 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.
The terms include:
� Up to $400 million in proposed direct funding � Access to $200
million in proposed loans
Amkor 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.
Amkor’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.
Commerce 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.
Amkor 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.
Amkor 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 customers
across a global manufacturing network.
Amkor first established its presence in the Greater Phoenix area
in 1984 and is excited to expand its footprint in the evolving
Arizona semiconductor industry. The new manufacturing location will
uniquely position Amkor among a strong ecosystem of front-end fabs,
IDMs, and suppliers with current or expanding presence in the
area.
The project has garnered strong support as it expands the
evolving semiconductor ecosystem, provides high-tech jobs, and
increases economic energy in the Greater Phoenix area.
“Amkor is proud to be the leading advanced packaging and test
OSAT headquartered in the US, and today’s announcement underscores
our commitment to grow America’s domestic semiconductor ecosystem,”
said Giel Rutten, Amkor’s president and chief executive
officer. “Amkor’s Arizona facility will enable us to support
the growing semiconductor manufacturing community—while creating
2,000 good jobs—and we look forward to providing our customers with
domestic advanced packaging and test capabilities. Advanced
packaging is an essential component of semiconductor innovation and
manufacturing, and we appreciate our partners at the Department of
Commerce for recognizing the importance of this sector as they work
to support our industry.”
“One of the fundamental goals of the CHIPS and Science Act is
creating an advanced packaging ecosystem in the U.S. to ensure full
start to finish chip production occurs domestically. Advanced
packaging drives chip innovation at all levels, and because of
President Biden’s leadership, the U.S. will have a robust domestic
footprint in this critical technology,” said U.S. Secretary of
Commerce Gina Raimondo. “The leading-edge chips that will be
packaged right here in Arizona are foundational to technologies of
the future that will define global economic and national security
for decades to come. Thanks to the Biden-Harris Administration, and
Amkor’s investments in the U.S., this proposed funding would
enhance our supply chain security, create thousands of jobs in
Arizona, and further position the United States to out-innovate,
out-build, and out-compete the rest of the world.”
“This announcement marks another significant milestone for
President Biden and Vice President Harris’s CHIPS & Science Act
– dramatically expanding advanced packaging capabilities in the
United States,” said National Economic Advisor Lael
Brainard. “Developing a comprehensive semiconductor ecosystem
here in America, from R&D through packaging, will strengthen
our technological leadership and create thousands of good paying
jobs.”
“The Biden-Harris Administration has committed to making the
U.S. a world leader in advanced packaging, which is so critical to
the future of the semiconductor industry because it allows us to
pack more capability onto every chip,” said Under Secretary of
Commerce for Standards and Technology and National Institute of
Standards and Technology Director Laurie E. Locascio.
“Investments in semiconductors will not succeed without investments
in advanced packaging and with this proposed CHIPS funding, Amkor
could play a crucial role in the U.S. semiconductor ecosystem.”
“Today's announcement underscores Arizona's position as the
semiconductor hub of the US and among the world's most advanced
manufacturing ecosystems. Amkor's Arizona expansion represents the
most significant advanced packaging facility in the United States,
reshoring a critical part of the semiconductor supply chain back to
North America. This investment means good, durable jobs for
Arizonans and that we will remain on the leading edge of the global
economy for generations to come.” – Arizona Governor Katie
Hobbs
“This is a big day for the state of Arizona and the entire
country. With this award and Amkor’s significant investment, their
new facility in Peoria will be one of the first advanced packaging
facilities in the United States, marking a critical step in
strengthening our microchip supply chain,” said Arizona Senator
and chief negotiator of the CHIPS and Science Act Mark Kelly.
“This project will create great-paying jobs, many of which won’t
require a four-year degree. The CHIPS and Science Act is working
for Arizona, providing new opportunities for our local workforce,
and is working for our country, bringing back advanced
manufacturing capabilities, and strengthening our national
security.”
“Arizona is continuing to lead the world in semiconductor
innovation. Thanks to our CHIPS Act, Amkor is expanding their
footprint with one of the first advanced packaging and testing
facilities in the U.S.,” said Rep. Greg Stanton. “Soon,
microchips manufactured in Arizona will be packaged in Arizona –
making our entire semiconductor supply chain more efficient and
resilient, while creating good-paying jobs here in the state.”
“Peoria is thrilled to celebrate this CHIPS Act announcement to
further support Amkor Technology,” said Peoria Mayor Jason
Beck. “This investment underscores the importance of advanced
packaging in the semiconductor industry and reinforces Peoria’s
position at the forefront of tech and innovation. This additional
funding will further enhance local communities through quality job
creation, while driving economic development growth for years to
come.”
“Today’s Amkor announcement will strengthen U.S.-based advanced
packaging operations—a critical step in the chip production
process—while further expanding Arizona’s booming semiconductor
ecosystem and bringing more jobs and economic growth to the state.
We commend Amkor for investing ambitiously in U.S.-based advanced
packaging, which is an area that needs to be strengthened in the
U.S. chip ecosystem, and we salute the U.S. Commerce Department for
continuing to make impressive headway in getting CHIPS Act
incentives out the door in a timely and effective manner. We look
forward to continuing to work with leaders in government and
industry to ensure the CHIPS Act delivers maximum benefits for
America’s economic strength, national security, and supply chain
resilience.” – SIA President and CEO John Neuffer
“We’re incredibly excited to celebrate Amkor’s CHIPS funding
announcement. Amkor’s advanced packaging and test facility will
support leading-edge chipmaking in Arizona, further bolstering U.S.
supply chain resiliency and emphasizing Arizona’s prominence for
advanced packaging technology. We are so grateful to Amkor for
their continued investment in Arizona and thank the Biden
Administration, the Commerce Department and CHIPS Program Office,
Governor Hobbs, and all our partners for their continued support."
– Sandra Watson, President and CEO, Arizona Commerce
Authority
About Amkor Technology, Inc.
Amkor Technology, Inc. is the world's largest US headquartered
OSAT (outsourced semiconductor assembly and test) service provider.
Since its founding in 1968, Amkor has pioneered the outsourcing of
IC packaging and test services and is a strategic manufacturing
partner for the world's leading semiconductor companies, foundries,
and electronics OEMs. Amkor provides turnkey manufacturing services
for the communication, automotive and industrial, computing, and
consumer industries, including but not limited to smartphones,
electric vehicles, data centers, artificial intelligence and
wearables. Amkor's operational base includes production facilities,
research and development centers, and sales and support offices
located in key electronics manufacturing regions in Asia, Europe
and the United States. For more information visit amkor.com.
Forward-Looking Statement Disclaimer
This press release contains forward-looking statements within
the meaning of the federal securities laws, including statements
about the amount and timing of CHIPS funding and government
support, the start of production in Arizona, the size, capability,
output and other features and benefits of the facility, the amount
of investment, the supply chain, job creation, our market position,
and growth. You are cautioned not to place undue reliance on
forward-looking statements. All forward-looking statements in this
press release are made based on our current expectations,
forecasts, estimates, and assumptions. Because such statements
include risks and uncertainties, actual results may differ
materially from those anticipated in such forward-looking
statements. Risk factors that could affect the outcome of the
events set forth in these statements include, but are not limited
to, that there can be no assurance that the facility will be built
on the timeline, at the cost or to the specifications expected or
at all or that the facility will generate sales or other benefits
of the type or amount expected or at all and other factors
discussed in the company’s reports filed with or furnished to the
Securities and Exchange Commission. All forward-looking statements
attributable to us or persons acting on our behalf are expressly
qualified in their entirety by this cautionary statement. We assume
no obligation to review or update any forward-looking statements to
reflect events or circumstances occurring after the date of this
press release except as may be required by applicable law.
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version on businesswire.com: https://www.businesswire.com/news/home/20240726782903/en/
Investor Relations Jennifer Jue Vice President, Investor
Relations and Finance 480-786-7594 jennifer.jue@amkor.com
Media Relations Christina Parsons Director, Marketing
Communications 480-786-7823 christina.parsons@amkor.com Social
media: @amkortechnology
Amkor Technology (NASDAQ:AMKR)
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