TSMC collaborates with Amkor to enhance its packaging capacity in Taiwan

Amkor and Taiwan Semiconductor Manufacturing Company (TSMC) signed a memorandum of understanding to improve packaging and testing capacity. TSMC would offer complete advanced packaging and testing services out of Amkor's proposed site in Peoria, Arizona. Supporting customers is the main goal of this action, especially for those who are making chips at TSMC's cutting-edge wafer factory in Phoenix, according to sources.

The entire product production cycle will be shortened, according to TSMC, because the Arizona site is close to Amkor's backend packaging and testing facilities.

According to Kevin Zhang, Deputy Co-COO at TSMC and Senior Vice President of Business Development and Global Sales, clients are depending more and more on cutting-edge packaging technologies to make advances in artificial intelligence (AI), high-performance computing (HPC), and mobile applications.

He added, TSMC and Amkor have joined forces as long-term strategic partners to provide these customers with a more diverse production base. Amkor's president and CEO, Giel Rutten, said that the company's commitment to promoting innovation and advancing semiconductor technology while preserving supply chain resilience can be seen by this partnership. Amkor stated in December 2023 that it would invest US$2 billion (NT$64 billion) in Arizona to build an advanced testing and packaging facility, as per sources.