Summary:
Amkor Technology is a global leader in semiconductor packaging and test services since its founding in 1968. A Fortune 500 Global Company, Amkor has committed to develop one or more facilities in Peoria with a minimum capital investment of $350M in phase one, and an addition $350M in Phase two for the general assembly, testing, probing, bumping, or packaging of semiconductors along with uses that are attendant to, support, or are related to the business of semiconductor packaging and testing. The site will be the largest outsourced packaging plant in the U.S. with a span of over 500,000 square feet.
The project will be located on a portion of the “Vistancia Commercial Core,” (also known as “5 North”). The first parcel, D-15, comprised of approximately 24.35 acres, and the second parcel D-16, comprised of approximately 31.96 acres are owned by Vistancia Development, LLC (“VDV”). VDV has agreed to sell and transfer property to Amkor for the purpose of constructing the project.
The public infrastructure will be constructed and reimbursed by way of a 3-way Joint Development Agreement (JDA) with Vistancia. Vistancia Development, LLC will construct the roads and provide utility delivery and the city will reimburse approximately $3M toward the cost of the public infrastructure.
The project is designed in two phases:
· Phase One means Amkor has invested at least $350M in capital expenditures in the project, has employed no fewer than 550 Full-Time Employees and has completed the design, construction, and operation of at least one manufacturing facility including all ancillary support systems and buildings. Phase one employment milestones include 300 employees no later than 9/30/2027; 425 employees no later than 9/30/2028; and 550 employees no later than 9/30/2029.
· Phase Two means that after the completion of Phase One, Amkor will invest at least $350M worth of additional Capital Expenditures in the project and has employed an additional 300 Full-Time Employees for a total of 850 Full-Time Employees on the property. Phase two may be achieved through investment of an additional $350M in capital expenditure without expanding the size or footprint of the facility.
Due to the enormity of the project, and to avoid any undue and unnecessary constraints on assets, the following milestones, breaches, and remedies have been established.
- Amkor agrees to take all actions required under the Vistancia purchase Agreement to close escrow on the property on or before October 31, 2024.
- Failure to complete will result in reversion of the land and water rights.
- Amkor agrees to commence construction on or before September 30, 2025.
- Failure to complete will result in reversion of the land and water rights.
- Amkor agrees to complete construction of the manufacturing facility for Phase One on or before September 30, 2027.
- Following notification by the City and post any cure periods should Amkor fail to complete construction of the project by this date, the company will pay $5K per day in liquidated damages for each day construction is not complete, until complete construction or the Liability Cap has been reached.
- Should Amkor fail to invest $350M in site improvements and construction, following notification by the City and any cure periods, Amkor shall pay $6.3M minus the Construction Transaction Privilege Tax (TPT) paid related to phase one construction.
- Should Amkor fail to achieve the employment milestones they shall pay $5K per employee per month until the employment milestone is achieved.
- Amkor agrees to complete construction of the manufacturing facility for Phase Two by 9/30/2034.
- Following notification by the City, and post any cure periods, should Amkor fail to invest an additional $350M in site improvements and construction it will result in damages in the amount of $6.3M minus any Construction TPT paid related to Phase two construction. Maximum liquidated damages related to all damage types shall not exceed $15 million.