TSMC, Amkor strike chip packaging deal at planned US plant

The TSMC-Amkor partnership is expected to increase Apple chip production in the U.S.

Taiwan Semiconductor Manufacturing Company (TSMC) has signed an advanced semiconductor packaging and testing deal with Arizona-based Amkor Technology, which has been providing the Taiwanese company with semiconductor assembly and test services for many years.

Per the agreement, Amkor Technology’s turnkey packaging and test services from its planned Peoria, Arizona site will support TSMC’s customers, particularly those using its advanced wafer fabrication facilities in Phoenix. “The close collaboration and proximity of TSMC’s front-end fab and Amkor’s back-end facility will accelerate overall product cycle times,” Amkor said in a press release.

The release also explained that the pair will jointly define the specific packaging technologies that will be employed to support “common customers’ needs,” such as TSMC’s Integrated Fan-Out (InFO) and Chip on Wafer on Substrate (CoWoS).

“Our customers are increasingly depending on advanced packaging technologies for their breakthroughs in advanced mobile applications, artificial intelligence and high-performance computing, and TSMC is pleased to work side by side with a trusted longtime strategic partner in Amkor to support them with a more diverse manufacturing footprint,” said Dr. Kevin Zhang, TSMC’s senior vice president of business development and global sales, and deputy Co-COO.

What’s not mentioned in the release, but has been reported elsewhere, is that this collaboration will lead to more US-based chips for Apple hardware.

In November 2023, Amkor announced plans invest approximately $2 billion into its first domestic outsourced semiconductor assembly and test (OSAT) facility in Peoria, and this summer, it signed a non-binding preliminary memorandum of terms with the U.S. Department of Commerce to receive up to $400 million in proposed direct funding and access to up to $200 million in proposed loans funding as part of the CHIPS and Science Act.

“Amkor’s Arizona facility will enable us to support the growing semiconductor manufacturing community — while creating 2,000 good jobs — and we look forward to providing our customers with domestic advanced packaging and test capabilities. Advanced packaging is an essential component of semiconductor innovation and manufacturing, and we appreciate our partners at the Department of Commerce for recognizing the importance of this sector as they work to support our industry,” Amkor’s President and Chief Executive Officer Giel Rutten said at the time.