TSMC and Amkor Partner to Bring Advanced Chip Packaging to the US
Phoenix, Arizona – Taiwan Semiconductor Manufacturing Company (TSMC), the world’slargest contract chipmaker, and Amkor Technology, a leading provider of semiconductor packaging and test services, announced a memorandum of understanding (MOU) on Thursday,outlining a collaboration to bring advanced chip production, packaging, and testing to the United States.
The partnership, which will be based in Arizona, aims toaccelerate the entire chip manufacturing process by leveraging the close proximity of both companies’ facilities. TSMC will utilize Amkor’s planned new facility in Peoria, Arizona, for turnkey advanced packaging and testing services. These services will support TSMC’sclients, particularly those using TSMC’s advanced wafer fabrication facilities in Phoenix.
The close collaboration between TSMC’s front-end wafer fabrication plant in Arizona and Amkor’s nearby back-end packaging and testing facility will significantlyreduce the overall product lead time. This strategic partnership is a testament to the growing trend of bringing chip manufacturing closer to the end markets, reducing supply chain vulnerabilities and fostering domestic innovation.
The collaboration has already seen tangible results. Apple confirmed last year that Amkor would package Apple Silicon chips produced at the nearby TSMC facility, as part of a shared ambition to expand manufacturing in the US. Tech journalist Tim Culpan recently reported that TSMC’s US plant has begun small-scale production of the A16 chip, which debuted in the iPhone 14 Pro models two years ago and is also used in the iPhone 15and iPhone 15 Plus models.
Amkor has committed to investing approximately $2 billion in this project, which is expected to create over 2,000 jobs upon completion. This collaboration signifies a significant step towards bolstering the US semiconductor industry and enhancing its competitiveness on a global scale.
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