Phoenix: Taiwan Semiconductor Manufacturing Co. (TSMC) and U.S.-based chip packaging and testing provider Amkor Technology have announced a 10-year agreement designed to expand advanced semiconductor packaging and testing capabilities in the United States.
According to Focus Taiwan, Amkor stated that this partnership aims to bolster the semiconductor supply chain in Arizona, where TSMC is heavily investing in chip manufacturing facilities. The agreement involves TSMC procuring advanced packaging and testing services from Amkor, addressing the growing demand for artificial intelligence (AI), high-performance computing (HPC), and other advanced technologies that necessitate high-end chip assembly services.
The collaboration is anticipated to create a more resilient U.S.-based semiconductor supply chain, benefiting customers across numerous industries. Amkor CEO Kevin Engel emphasized the significance of this agreement, stating that it represents a crucial step in accelerating advanced semiconductor manufacturing in the U.S. and providing a comprehensive supply chain from manufacturing to packaging.
Kevin Zhang, TSMC's Senior Vice President and Deputy Co-COO, highlighted the long-standing history of collaboration between the companies on advanced packaging technologies. Zhang expressed confidence in the success of their partnership in the U.S., aiming to enhance their capabilities to jointly serve customers.
The agreement builds upon a memorandum of understanding signed by TSMC and Amkor in October 2024, focusing on bringing advanced packaging and testing capabilities, including Chip-on-Wafer-on-Substrate (CoWoS) technology, to Arizona. This technology is widely used in AI applications.
Amkor is recognized as the world's second-largest chip packaging and testing company, trailing only Taiwan's ASE Technology Holding Co. TSMC's Arizona campus currently includes a fab in mass production, with another slated for mass production in 2027. Construction of a third fab commenced earlier this year, all part of TSMC's US$65 billion initial investment project in Arizona.
TSMC has also announced plans for an additional US$100 billion investment in Arizona, encompassing three more new fabs, two packaging facilities, and a research and development center.