PEORIA, Ariz. — Semiconductor manufacturer Amkor Technology is relocating its planned $2 billion advanced packaging and test facility to a new, larger site in north Peoria, Arizona, following a city-backed land swap and community debate.

The new 104-acre location will anchor the Peoria Innovation Core, a tech hub under development. Construction is set to begin in the coming days, with production scheduled for early 2028.

The move comes after months of delays and pushback from residents near the project’s original site within the Five North mixed-use development at Vistancia. Concerns were raised about environmental and health impacts in proximity to homes, schools, and businesses.

Amkor said the relocation addresses those issues while giving the company more space to meet rising demand.

“This new site offers the flexibility to meet growing customer demand and reinforces our commitment to U.S.-based chip manufacturing,” Amkor CEO Giel Rutten said last week.

The project is expected to create over 2,000 jobs in the Peoria area and will play a central role in the U.S. semiconductor supply chain. Amkor previously received up to $407 million in CHIPS and Science Act funding to support construction and workforce development.

The Peoria City Council helped pave the way by making a $46.7 million bid for 834.5 acres of Arizona Trust Land, securing room for both Amkor and other future tech firms within the innovation hub.

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Amkor has also partnered with Apple, which will be its first and largest customer when the facility begins operations. The plant will package and test chips manufactured at Taiwan Semiconductor Manufacturing Co.’s (TSMC) Arizona fab, tying together two major players in the global chip ecosystem.

Rutten emphasized on a recent earnings call that Amkor’s direction remains unchanged despite the relocation.

“We’re working with customers as well as with foundry partners to align on our road map, and we are making good progress there,” he told investors.

In the most recent quarter, Amkor reported $1.5 billion in revenue, up 3% year-over-year, though net income dropped 19% to $54.4 million. The Arizona project is expected to strengthen its long-term growth by securing a larger role in U.S. chip manufacturing.

Industry analysts note that the relocation reflects a broader trend in the semiconductor sector: companies are expanding projects to accommodate larger scopes and mitigate community concerns, while aligning with federal incentives to reduce dependence on overseas production.

With site preparation about to begin, Peoria leaders are touting the project as a major win for the region. “This facility is not just about one company,” a city statement noted. “It’s about positioning Peoria as a hub for the technologies that will drive the next generation of innovation.”

Originally reported by Nathan Owens in Construction Dive.