TSMC, Amkor sign 10-year deal to boost advanced chip packaging in US
Taipei, June 18
Taiwan Semiconductor Manufacturing Co and US-based chip packaging and testing provider Amkor Technology have signed a 10-year agreement aimed at expanding advanced semiconductor packaging and testing capabilities in the United States, according to a news report by Focus Taiwan.
In a statement released Tuesday US time, Amkor said the partnership will support the development of a more integrated semiconductor supply chain in Arizona, where TSMC is investing heavily in chip manufacturing facilities, the report added.
Under the agreement, TSMC will procure advanced packaging and testing services from Amkor, which said growing demand for artificial intelligence (AI), high-performance computing (HPC) and other advanced technologies has increased the importance of high-end chip assembly services.
Amkor said the collaboration is expected to create a more resilient US-based semiconductor supply chain and benefit customers across a wide range of industries.
"This Agreement marks an important next step in our partnership with TSMC as we accelerate advanced semiconductor manufacturing in the US to provide our customers a full US supply chain from advanced silicon manufacturing to tested packaged devices," Amkor CEO Kevin Engel said.
TSMC Senior Vice President and Deputy Co-COO Kevin Zhang said the companies have a long history of working together on advanced packaging technologies.
"We are pleased to enter into this agreement with our partner Amkor," Zhang said. "We are confident that our collaboration in the United States will be successful as we look to enhance our capabilities to jointly serve our customers."
The agreement builds on a memorandum of understanding signed by the two companies in October 2024 to bring advanced packaging and testing capabilities to Arizona, including Chip-on-Wafer-on-Substrate (CoWoS) technology, which is widely used in AI applications.
Amkor is the world's second-largest chip packaging and testing company after Taiwan's ASE Technology Holding Co.
TSMC's Arizona campus currently includes one fab in mass production, a second scheduled to begin mass production in 2027. Construction of a third fab started earlier this year.
The three fabs were the centerpieces of TSMC's USD 65 billion initial investment project in Arizona.
TSMC has also announced plans to invest an additional USD 100 billion in Arizona, including three more new fabs, two packaging facilities and a research and development center.
— ANI
Reader Comments
TSMC is spending billions in Arizona, while we in India are still struggling with our chip fab proposals. Yes, we have the PLI scheme, but execution is lagging. The US is securing its supply chain with partners like Japan and Taiwan. We need similar concrete moves, not just MoUs. Time is running out.
Great to see Amkor and TSMC doubling down on US manufacturing. As a supply chain professional, I see this as a smart hedge against geopolitical risks. India could learn from Arizona's approach—tax incentives, infrastructure, and skilled workforce development in one location. We need a "semiconductor valley" of our own.
All this AI chip packaging is great, but who will actually assemble these in India? The government talks about becoming a chip hub, but we don't even have a single advanced packaging facility yet. The US, Taiwan, even Vietnam are moving ahead. We need to stop dreaming and start building—with real deadlines.
While this is a US-Taiwan story, it has implications for India's electronics manufacturing ambitions. As Apple and others shift production here, advanced chip packaging will become critical for devices made in India. We can't just be an assembly hub; we need the entire value chain. Hopefully, this deal pushes our policymakers to act faster.
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