TSMC and Amkor Collaborate on Advanced Packaging in Arizona

Two major players in the semiconductor industry, Taiwan Semiconductor Manufacturing Company (TSMC) and Amkor Technology, have recently inked a significant agreement. The memorandum of understanding outlines TSMC subcontracting certain advanced packaging and test services from Amkor at their planned facility in Peoria, Arizona. This collaboration comes as no surprise, given that Amkor has already secured Apple, a key TSMC customer, to be the primary and largest client for the Arizona plant.

One of the key questions arising from this partnership is how TSMC's proprietary packaging techniques will be transferred to Amkor. The packaging facility is slated to commence operations within the next couple of years, marking a significant milestone in the collaboration between the two companies.

Amkor has disclosed that TSMC will leverage its services to support its clients, particularly those utilizing TSMC's cutting-edge wafer fabrication facilities in Phoenix. The close proximity of TSMC's front-end fab and Amkor's back-end facility is expected to streamline product cycle times significantly. The collaboration will encompass the utilization of TSMC's Integrated Fan-Out (InFO) and Chip on Wafer on Substrate (CoWoS) technologies to cater to the shared needs of their customers.

"This expanded partnership underscores our commitment to driving innovation and advancing semiconductor technology while ensuring resilient supply chains," stated Giel Rutten, CEO of Amkor, emphasizing the strategic importance of the collaboration. TSMC's senior vice president, Kevin Zhang, echoed this sentiment, expressing TSMC's enthusiasm to collaborate closely with Amkor at their Peoria facility to maximize the value of their fabs in Phoenix and offer more comprehensive services to customers in the United States.

As the semiconductor industry continues to evolve rapidly, partnerships like the one between TSMC and Amkor are crucial for fostering innovation and meeting the growing demands of customers. By combining their expertise and resources, the two companies aim to address the increasing need for advanced packaging technologies in applications such as mobile devices, artificial intelligence, and high-performance computing. This collaboration not only benefits the companies involved but also contributes to the development of a more robust semiconductor ecosystem.