--- title: "Amkor's $12 billion Arizona campus: customers prepay, Washington has paid $0, the utility has no spare power" description: "A dozen customers are paying upfront for space in Amkor's Peoria campus, the federal CHIPS award has paid nothing, and the utility serving the site says it has no spare power. The stock's 57% fall has repriced that funding structure, taking the shares from 2.9 times sales to 1.1." publisher: "The Inference" section: "Chips" published: 2026-11-07T16:10:16.932Z modified: 2026-11-07T16:10:16.932Z canonical: https://theinference.org/article/amkor-s-12-billion-arizona-campus-customers-prepay-washington-has-paid-0-the-utility-has-no-spare-power language: en keywords: "Amkor, Advanced Packaging, CHIPS Act, Semiconductors, Arizona" --- # Amkor's $12 billion Arizona campus: customers prepay, Washington has paid $0, the utility has no spare power > A dozen customers are paying upfront for space in Amkor's Peoria campus, the federal CHIPS award has paid nothing, and the utility serving the site says it has no spare power. The stock's 57% fall has repriced that funding structure, taking the shares from 2.9 times sales to 1.1. [Amkor](https://theinference.org/markets/companies/amkor-technology)'s $12 billion Peoria, Arizona packaging campus is being funded three ways, and only one of the three is paying: customers prepay cash to reserve space, the Arizona utility is building power on 25-year contracts it has signed with others, and the federal government has paid nothing yet on a $407 million award [4][5][2]. [The stock's fall of 57% between May 10 and November 6](https://www.trefis.com/stock/amkr/articles/623627/what-is-driving-the-fall-in-amkor-stock/2026-11-07) is the market repricing that funding structure, because the quarter's own revenue was nearly flat [3]. If prepaid capacity converts to revenue on the 2028 schedule Amkor has published, the price now on the screen is too low for 2027 and 2028. The rest of this piece is about who carries the plant until then. ## Customers fund the plant, Washington has paid nothing yet Start with the money, because it is new. CFO [Megan Faust](https://theinference.org/markets/people/megan-faust) said on the [October 26 call](https://newsforagent.com/news/2026-11-05/amkor-record-revenue-advanced-packaging) that a dozen customers have signed [advance-payment arrangements](https://theinference.org/article/amkor-s-2-5-3-billion-ai-packaging-bet-partly-prepaid-by-nvidia-gets-its-first-test-october-26) since 2025, putting cash up front to lock in multiyear advanced-packaging production space in Korea and Arizona [4]. Customers are funding the expansion. Washington is not: Amkor's [October SEC filing](https://arizonaai.com/news/amkor-reports-553-million-in-arizona-plant-costs-with-no-chips-grant-payments) shows $553.3 million of construction costs incurred in Peoria through September 30 and zero received from the federal CHIPS award of up to $407 million, which pays only as construction and production milestones are met [2]. ## The power for the campus is being built on other customers' contracts On November 4, Pinnacle West, the utility that would serve the campus, [said it has no excess generation or transmission capacity anywhere in its territory](https://www.theglobeandmail.com/investing/markets/stocks/PNW/pressreleases/8661554/pinnacle-west-earnings-call-signals-strong-growth-ahead/), and it is raising $700 million of notes and about $235 million of equity to build for chip customers on 25-year direct contracts [5]. The one 25-year direct pricing contract it named is [TSMC](https://theinference.org/markets/companies/tsmc)'s, for about 1.88 gigawatts at full build-out [5]. It cites Amkor's campus only among new manufacturing demand, and uncontracted data center and manufacturing demand remains outside its current plan [5]. A power contract for Peoria is still ahead of the company. ## The quarter gives the market its case Revenue was $1,991 million, up 0.2% year on year after 25.6% growth the quarter before, and [the fourth quarter is guided flat](https://sector-signals.net/en/themes/advanced-packaging/articles/amkor-3q26-results-computing-share-capex-2026) at $1.9 to 2.0 billion [1][3]. Advanced products revenue fell to $1,632 million from $1,684 million, while mainstream wirebond, the older lower-technology packaging used for simpler chips, rose to $359 million from $303 million [1]. The gross margin gain to 18.3% was almost entirely cheaper materials; depreciation and labor took 2.8 points back, and more depreciation arrives as new plants open [1]. *Chart: **Amkor's computing share climbed from 19% to 26% while smartphones fell to 37%** Grouped bars of Amkor's end-market revenue mix in July-September 2025 and July-September 2026: computing 19% to 26%, automotive and industrial 16% to 22%, communications 51% to 37%, consumer 14% to 15%.* *Share of quarterly revenue by end market, July-September 2025 versus July-September 2026, in percent of total revenue. Source: Sector Signals. [1]* ## Who carries the plant while it is empty So who carries it? Customers reserve space and get locked-in capacity; Amkor gets cash for a plant it cannot yet fill; taxpayers have paid nothing; shareholders own the years between groundbreaking and advanced revenue [2][3][4]. The repricing has a before and after. Amkor traded at [2.9 times sales at the end of June](https://theinference.org/article/amkor-s-10-day-slide-to-41-82-prices-nvidia-s-1-5-billion-as-a-prepayment-not-committed-revenue), the highest multiple of any quarter-end back to late 2016, and by the November 6 close it stood at 1.1 times, with trailing earnings at 13.1 times against 21.8 for the S&P 500 [3]. That is the price assuming the gap between the plant and its revenue lasts. The evidence to watch is fourth-quarter gross margin and the 2027 capital plan due in February [3]. ## Takeaway Amkor's $12 billion Peoria campus is being carried by customer prepayments while the $407 million CHIPS award has paid out nothing and the local utility has no spare power; the 57% share fall to 1.1 times sales prices that gap lasting until 2028. ## Sources 1. [Sector Signals, Amkor: Computing Rises to 26% of Sales, 4 November 2026](https://sector-signals.net/en/themes/advanced-packaging/articles/amkor-3q26-results-computing-share-capex-2026) 2. [Arizona AI, Amkor reports $553 million in Arizona plant costs, with no CHIPS grant payments received, 30 October 2026](https://arizonaai.com/news/amkor-reports-553-million-in-arizona-plant-costs-with-no-chips-grant-payments) 3. [Trefis, What Is Driving The Fall In Amkor Stock?, 7 November 2026](https://www.trefis.com/stock/amkr/articles/623627/what-is-driving-the-fall-in-amkor-stock/2026-11-07) 4. [News for Agent, Amkor Technology Reports Record Revenue in Computing and Auto, 5 November 2026](https://newsforagent.com/news/2026-11-05/amkor-record-revenue-advanced-packaging) 5. [The Globe and Mail / Tipranks, Pinnacle West Earnings Call Signals Strong Growth Ahead, 4 November 2026](https://www.theglobeandmail.com/investing/markets/stocks/PNW/pressreleases/8661554/pinnacle-west-earnings-call-signals-strong-growth-ahead/) --- Amkor's $12 billion Arizona campus: customers prepay, Washington has paid $0, the utility has no spare power — The Inference. Canonical: https://theinference.org/article/amkor-s-12-billion-arizona-campus-customers-prepay-washington-has-paid-0-the-utility-has-no-spare-power