Taiwan Semiconductor Manufacturing Company (TSMC) and Amkor Technology have signed a strategic agreement to strengthen advanced semiconductor packaging and testing capabilities in the U.S. As part of the collaboration, Amkor's upcoming facility in Peoria, Arizona, will support TSMC’s advanced wafer fabrication plant in Phoenix, providing integrated turnkey packaging and testing services.

The close proximity of TSMC’s front-end fabrication facility and Amkor’s back-end testing site will help accelerate product cycle times, a key advantage for customers using advanced packaging technologies such as TSMC's Integrated Fan-Out (InFO) and Chip on Wafer on Substrate (CoWoS). TSMC's senior vice president, Dr. Kevin Zhang, emphasized the growing demand for advanced packaging solutions, driven by innovations in mobile applications, artificial intelligence (AI), and high-performance computing.

“This partnership allows us to expand our manufacturing footprint and deliver breakthroughs for our customers," Zhang noted. Both companies will work together to define specific packaging technologies that meet the needs of shared customers.

In 2023, Amkor announced a $2 billion investment in its first U.S.-based outsourced semiconductor assembly and testing (OSAT) facility in Peoria, with plans to create 2,000 jobs. As part of the U.S. CHIPS Act, Amkor secured a memorandum of terms with the Department of Commerce to access up to $400 million in direct funding and $200 million in loans.

Giel Rutten, President and CEO of Amkor, highlighted the importance of advanced packaging in semiconductor innovation, stating, “Our Arizona facility will enable us to support the growing U.S. semiconductor manufacturing community while providing advanced packaging solutions essential to the industry’s future."

This collaboration is expected to further bolster the U.S. semiconductor ecosystem, bringing domestic production capabilities for critical technologies and supporting key markets such as high-performance computing and telecommunications.