Amkor Technology will relocate its proposed semiconductor packaging plant to a piece of state land recently auctioned off to Peoria, which plans to develop a larger tech-industry hub at the site.
Peoria purchased the 835-acre area at auction for $46.7 million on Aug. 27. The city was the only bidder. It is scheduled to execute a land exchange and other agreements with Amkor on Aug. 28, which would give the chip packaging company a 104-acre parcel.
The site, located at Loop 303 and Lake Pleasant Parkway, is part of the much larger, roughly 6,700-acre master-planned area of the “Peoria Innovation Core.” The 835-acre site purchased by the city, labeled “core 2,” has been designated for a mix of uses, including employment and business parks, commercial, mixed-use village centers and parks and open space.
Peoria Mayor Jason Beck bids on a parcel of land at an Arizona State Land Department auction. The land is part of Peoria’s “innovation core.”
The move makes the chip packaging company an anchor tenant of the Peoria Innovation Core, kickstarting city officials’ plans for the business corridor. Amkor is sinking $2 billion into its new facility and expects to hire thousands in the area.
The company will get a larger piece of land and will move from its current site in Vistancia, where it has seen backlash from local residents concerned about land use and the plant’s potential impact on traffic, water quality and air quality.
Peoria Mayor Jason Beck said the purchase of the core 2 parcel was the culmination of years of work, starting with a campaign pledge he made to spark economic development.
“This will change not only the way Peoria does business, but also the West Valley and I would dare to say the entire state,” Beck said of the deal.
The company’s construction timeline and building plans appeared to hold firm, despite the last-minute location shakeup. It was scheduled to begin construction next month and hold a ceremonial groundbreaking on Oct. 6.
“Pending City Council’s approval, we look forward to immediately beginning construction of what will be the largest outsourced semiconductor packaging and test facility in the U.S.,” said CEO Giel Rutten in a statement. “Amkor’s multi-phase investment in facilities and equipment will play an integral role in securing the semiconductor supply chain essential for critical industries including high-performance computing, communications and automotive.”
According to Amkor, production at the first phase of the facility is expected to begin in early 2028.
Amkor’s facility was initially set to sit on a 56-acre slice of Vistancia Development’s 320-acre commercial core called Five North at Vistancia. It’s located just west of Loop 303, between Lone Mountain Parkway and Vistancia Boulevard. Amkor acquired the land from Vistancia last year for just over $4 million.
Now, it will rest on a 104-acre parcel near Loop 303 and Lake Pleasant Parkway, a few miles northeast of its initial site. That piece of land is significantly roomier than its previous location — about double the size.
Once built, its facility will span about 2 million square feet, with some structures as tall as 118 feet. The company is expected to fully complete construction by September 2034.
The Peoria City Council will consider a land exchange agreement at its meeting on Aug. 28, meaning Amkor would trade its current parcel of land at Vistancia for the new, 104-acre site.
At a Peoria City Council meeting in December, Mike Faust, deputy city manager, cautioned that development in the 6,700-acre core would likely shape up over the next two decades. The area could eventually be home to thousands of new jobs, especially in the semiconductor and technology sectors, and 30,000 new homes.
The core 2 parcel, which was purchased at the auction, totals about 835 acres, but has about 600 developable acres, Faust said at a council meeting on Aug. 26.
Three members of the public spoke at the meeting, including two who said they were concerned about the environmental impact of large-scale development in the area, especially its impact on nearby aquifers and water supply. One speaker said he supported the project and was glad to see a meaningful step in Peoria’s economic development goals.
