TSMC & US-Based Amkor Technologies To Bring In CoWoS Production Into The US, Pivotal Moment For The AI Markets

Oct 4, 2024 at 09:20am EDT
TSMC & US-Based Amkor Technologies To Bring In CoWoS Production Into The US, Pivotal Moment For The AI Markets 1

TSMC and Amkor Technologies are working to bring advanced chip packaging technology to the US, with Taiwan's giant Arizona facility playing a significant role.

TSMC's Arizona Facility To Be Responsible For Chip Packaging Production, AI Hardware Manufacturers To Benefit Tremendously

[Press Release]: Amkor Technology, Inc and TSMC announced today that the two companies have signed a memorandum of understanding to collaborate and bring advanced packaging and test capabilities to Arizona, further expanding the region’s semiconductor ecosystem.

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Amkor and TSMC have been closely collaborating to deliver high volume, leading-edge technologies for advanced packaging and testing of semiconductors to support critical markets such as high-performance computing and communications. Under the agreement, TSMC will contract turnkey advanced packaging and test services from Amkor in their planned facility in Peoria, Arizona. TSMC will leverage these services to support its customers, particularly those using TSMC’s advanced wafer fabrication facilities in Phoenix. The close collaboration and proximity of TSMC’s front-end fab and Amkor’s back-end facility will accelerate overall product cycle times.

Amkor is proud to collaborate with TSMC to provide seamless integration of silicon manufacturing and packaging processes through an efficient turnkey advanced packaging and test business model in the United States.

- Giel Rutten, Amkor’s President and CEO

The companies will jointly define the specific packaging technologies, such as TSMC’s Integrated Fan-Out (InFO) and Chip on Wafer on Substrate (CoWoS) that will be employed to address common customers’ needs.

The agreement underscores the shared commitment to supporting customer requirements for geographic flexibility in front-end and back-end manufacturing, as well as fostering the development of a vibrant and comprehensive semiconductor manufacturing ecosystem in the United States. The companies’ shared vision is to enable seamless technology alignment for customers across a global manufacturing network.

[Journalist Note]: It looks like TSMC has started to take its US ambitions much more seriously, since the potential "transfer" of advanced chip packaging technology to the nation shows that the Taiwan giant is no more reluctant in shifting its production lines into the US. And, given that packaging technologies such as CoWoS is in hot-demand, the TSMC-Amkor partnership will surely prove to be a breakthrough for the US semiconductor industry, and the ambitions of the government to reach a self-subsistent semiconductor production capability.

About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.

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