07:08 AM EDT, 07/26/2024 (MT Newswires) -- Amkor Technology ( AMKR ) said Friday it signed a non-binding preliminary memorandum of terms with the US Department of Commerce for proposed funding under the CHIPS and Science Act for the development of a $2 billion outsourced semiconductor assembly and test facility in Peoria, Arizona.

The terms include up to $400 million in direct funding and $200 million in loans.

Amkor ( AMKR ) also plans to use the Department of the Treasury's Investment Tax Credit, covering up to 25% of qualified capital expenditures.

The facility will employ around 2,000 people.

The facility, to be built on a 55-acre site with over 500,000 square feet of clean room space, is expected to begin production at the first phase of the manufacturing facility within three years.