[News] TSMC, Amkor Sign 10-Year Arizona Advanced Packaging Pact to Complete the U.S. Chip Supply Chain

TSMC is strengthening its U.S. advanced packaging supply chain through a new long-term partnership with Amkor. According to an Amkor press release, the two parties have announced a 10-year agreement to enhance advanced packaging capabilities in Arizona and support further investment in the U.S. semiconductor supply chain.

The agreement establishes a framework under which TSMC will procure advanced packaging and testing services from Amkor. The collaboration is expected to expand regional advanced packaging capacity and help accelerate time to market for customers. Amkor CEO Kevin Engel said the partnership aims to provide customers with a fully U.S.-based supply chain, spanning advanced wafer manufacturing through packaging and testing.

Completing the U.S. Semiconductor Supply Chain

The agreement marks a significant step toward building a fully integrated U.S. semiconductor supply chain. As highlighted by ESM China, over the past years, TSMC has invested heavily in advanced chip manufacturing fabs in Arizona, and customers have already begun sourcing chips produced there. However, many of those chips still need to be shipped back to Asia for advanced packaging after fabrication.

In other words, while the U.S. has regained advanced chip manufacturing capabilities, the final piece of the puzzle—advanced packaging—has remained largely missing, according to ESM China.

That gap is now beginning to close. ESM China notes that TSMC plans to establish its first advanced packaging facility in Arizona by 2029, with CoWoS and 3D-IC capacity. Meanwhile, Amkor’s packaging campus in Peoria, Arizona, is expected to serve as TSMC’s key domestic packaging partner, handling the packaging and testing of high-end chips produced in the region.

The deal also comes as Amkor continues to expand its advanced packaging footprint in Arizona. Reuters reported that the company has secured an additional 67 acres of land adjacent to a 104-acre site where it is developing a new advanced packaging campus, with production slated to begin in 2028.

Read more

• [News] TSMC CoWoS Supply-Demand Gap Reportedly Seen Narrowing from 20% to 10% by End-2026
• [News] TSMC Reportedly Eyes 2H27 3nm Mass Production at Arizona Fab 2; Four U.S. Fabs Said to Be Fully Booked

(Photo credit: TSMC)