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TSMC and Amkor partner for advanced packaging in Arizona
Wednesday, January 7, 2026 at 07:17 AM
TSMC and Amkor Technology have signed a memorandum of understanding to collaborate on advanced packaging and testing services in Arizona, focusing on Integrated Fan-Out (InFO) and CoWoS technologies to support local semiconductor manufacturing.
Context
TSMC and Amkor Technology have finalized a strategic partnership to bring advanced packaging capabilities to Arizona, closing a critical gap in the domestic semiconductor supply chain. Under the agreement, TSMC will utilize Amkor’s planned $2 billion facility in Peoria to provide turnkey services, specifically Integrated Fan-Out (InFO) and Chip on Wafer on Substrate (CoWoS). This collaboration ensures that high-performance chips manufactured at TSMC’s nearby Phoenix fabs can be packaged and tested within the U.S., significantly reducing the logistical risks and lead times associated with shipping silicon back to Asia for final assembly.
The move is a vital step for major customers like Apple, Nvidia, and AMD, who require these advanced techniques to power next-generation AI and high-performance computing hardware. By establishing the first large-scale outsourced semiconductor assembly and test (OSAT) ecosystem in America, the project addresses the packaging bottlenecks that have recently constrained global AI chip supply. The $2 billion investment is expected to create 2,000 jobs, with operations slated to align with the production ramp-up of TSMC’s Arizona fabs beginning in 2025.
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