TSMC, Amkor Sign 10-Year Arizona Chip Packaging Deal
TSMC Phoenix AZ

Image courtesy of TSMC.

AZ Testing Capacity and Packaging

TSMC and Amkor Technology signed a 10-year agreement to expand advanced semiconductor packaging and testing in Arizona. The partnership will accelerate production of AI and high-performance computing chips while strengthening the U.S. semiconductor supply chain. Amkor will deliver advanced packaging and testing near TSMC’s Phoenix fabs, creating a more integrated domestic semiconductor manufacturing ecosystem.

TSMC (NYSE:TSM) has entered a 10 year partnership with Amkor Technology to expand advanced semiconductor packaging and testing capacity in Arizona.

The collaboration focuses on supporting high performance computing and AI chips while strengthening the US supply chain for advanced semiconductors.

Amkor plans to provide advanced packaging and test services near TSMC’s Arizona fabs, aligning manufacturing and backend operations in one US hub.

Taiwan Semiconductor Manufacturing is a central contract manufacturer for many of the most complex chips used in data centers, AI accelerators, and high performance computing. This new agreement with Amkor adds packaging and testing capacity in Arizona that sits closer to TSMC’s planned wafer production, which can support more localized chip manufacturing for US based customers. For investors following NYSE:TSM, the move highlights how advanced packaging has become a key piece of the semiconductor supply chain.

Advanced packaging and testing are increasingly important as AI and computing workloads require higher performance and more complex chip designs. By committing to a 10 year partnership, TSMC and Amkor are aligning around long dated demand for these services without tying that to any specific forecast. Readers tracking semiconductor supply chains may want to watch how quickly this Arizona capacity is built out, how it is utilized over time, and which customer segments ultimately rely on it.

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About TSMC

TSMC (Taiwan Semiconductor Manufacturing Company Limited or Taiwan Semiconductor) is a Taiwanese multinational semiconductor contract manufacturing and design company. It is the world’s largest dedicated independent semiconductor foundry, and its country’s largest company, with headquarters and main operations located in Hsinchu, Taiwan. Although the central government of Taiwan is the largest individual shareholder, the majority of TSMC is owned by foreign investors. In 2023, TSMC served 528 business customers and manufactured 11,895 products for various applications covering a variety of end markets including high performance computing, smartphones, the Internet of Things (IoT), automotive, and digital consumer electronics.

About Amkor Technology, Inc.

Amkor Technology, Inc. is the world’s largest US headquartered OSAT (outsourced semiconductor assembly and test) service provider. Since its founding in 1968, Amkor has pioneered the outsourcing of IC packaging and test services. It is a strategic manufacturing partner for the world’s leading semiconductor companies, foundries, and electronics OEMs. Amkor provides turnkey manufacturing services for the communication, automotive and industrial, computing, and consumer industries, including smartphones, electric vehicles, data centers, artificial intelligence, and wearables. Amkor’s operational base includes production facilities, research and development centers, and sales and support offices located in key electronics manufacturing regions in Asia, Europe, and the United States.

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