TSMC and Amkor Forge 10-Year Arizona Partnership to Strengthen U.S. Semiconductor Packaging Ecosystem
Taiwan Semiconductor Manufacturing Company (TSMC) and Amkor Technology have entered into a long-term strategic agreement aimed at expanding advanced semiconductor packaging and testing capabilities in Arizona, reinforcing the United States’ domestic chip supply chain.
Under the 10-year partnership, TSMC will utilize Amkor’s advanced packaging and testing services for chips manufactured at its Arizona facilities. The collaboration is expected to boost local packaging capacity, shorten production timelines, and provide customers with a more integrated semiconductor manufacturing ecosystem within the United States.
Kevin Engel, President and CEO of Amkor, stated that the agreement supports the industry’s goal of creating a fully domestic semiconductor supply chain—from wafer fabrication to advanced packaging and final testing.
Closing a Critical Gap in U.S. Chip Manufacturing
While TSMC has made significant investments in advanced semiconductor fabrication plants in Arizona, a substantial portion of chips produced in the U.S. still require shipment to Asia for advanced packaging processes. Industry observers have identified this as one of the key missing components in establishing a complete U.S.-based semiconductor ecosystem.
The new partnership seeks to address that challenge. TSMC plans to develop its first advanced packaging facility in Arizona by 2029, featuring CoWoS and 3D-IC technologies. At the same time, Amkor’s advanced packaging campus in Peoria, Arizona, is expected to play a central role in packaging and testing high-performance chips manufactured locally.
Arizona Emerges as a Semiconductor Packaging Hub
Amkor continues to expand its Arizona footprint, recently securing an additional 67 acres adjacent to its existing 104-acre site. The company is developing a large-scale advanced packaging campus, with production operations expected to commence in 2028.
The agreement highlights growing efforts to localize semiconductor manufacturing and reduce reliance on overseas packaging infrastructure, positioning Arizona as a major center for advanced chip production and packaging in North America.
