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Key Highlights
- Turnkey Services Agreement: TSMC will contract Amkor for advanced packaging and test services at a planned facility in Peoria, Arizona.
- Accelerated Product Cycle Times: Proximity between TSMC’s fabrication plant and Amkor’s packaging facility aims to shorten overall product development timelines.
- Focus on Advanced Technologies: The partnership will utilize innovative packaging technologies, including TSMC's Integrated Fan-Out (InFO) and Chip on Wafer on Substrate (CoWoS®).
Amkor Technology, Inc. (Nasdaq:AMKR) and Taiwan Semiconductor Manufacturing Company (TSMC) (TWSE: 2330, NYSE: TSM) have signed a memorandum of understanding to collaborate on advanced packaging and testing capabilities in Arizona. This agreement marks a significant step towards strengthening the semiconductor ecosystem in the region.
The collaboration between Amkor and TSMC focuses on delivering high-volume, leading-edge technologies to support critical markets such as high-performance computing and communications. By leveraging Amkor’s advanced packaging and testing capabilities, TSMC aims to enhance its service offerings to customers utilizing its wafer fabrication facilities located in Phoenix. This synergy is expected to lead to significant improvements in efficiency and speed of production.
The specific packaging technologies to be employed under this agreement will be jointly defined by both companies. TSMC’s Integrated Fan-Out (InFO) technology and the Chip on Wafer on Substrate (CoWoS®) process are central to addressing the diverse needs of their shared customer base. By combining resources and expertise, Amkor and TSMC intend to ensure that they can meet the evolving demands of the semiconductor industry.
The agreement highlights a shared commitment to geographic flexibility in both front-end and back-end manufacturing. As semiconductor markets grow increasingly competitive, the need for a resilient supply chain and comprehensive manufacturing ecosystem becomes paramount. The collaboration aims to foster a vibrant semiconductor manufacturing environment in the United States, enabling seamless technology alignment across a global manufacturing network.
Giel Rutten, President and CEO of Amkor, expressed pride in the partnership, stating that it represents a commitment to innovation and advancing semiconductor technology. “This expanded partnership underscores our commitment to driving innovation and advancing semiconductor technology while ensuring resilient supply chains,” Rutten said.
Dr. Kevin Zhang, TSMC’s Senior Vice President of Business Development and Global Sales, echoed this sentiment. He noted that customers are increasingly relying on advanced packaging technologies for innovations in mobile applications, artificial intelligence, and high-performance computing. Zhang emphasized the importance of Amkor as a strategic partner in expanding TSMC's manufacturing footprint.
This collaboration not only reflects a proactive approach to meeting customer demands but also aims to enhance the overall capability of the semiconductor industry in the U.S. By working together, Amkor and TSMC seek to create a more robust and flexible semiconductor manufacturing landscape, positioning both companies to better serve their customers’ needs.
The partnership is poised to significantly impact the semiconductor sector, as it enhances collaboration and resource sharing between two industry leaders. As the demand for semiconductor technologies continues to grow, this strategic alliance is likely to play a vital role in shaping the future of advanced packaging and testing in the region.
