TSMC-Amkor chip packaging deal will boost Apple chip production in the US
TSMC is expanding the capabilities of its chip plant in Arizona by partnering with the US-based Amkor Technology to add advanced packaging and test capabilities. The move will result in more US-based Apple chip production in the future.
Amkor headquarters in Arizona [Amkor]
TSMC's Arizona plant is just getting started with its operations after four years of construction, with the production of A16 chips at the facility in September. However, while manufacturing the chips is one thing, it still needs to be packaged.
Chip packaging is one of the last steps in producing a usable chip that can be used in Apple's hardware. While TSMC makes the chip itself, chip packaging refers to the protective elements around the chip, which are also used to interface with a board.
On Thursday, Amkor and TSMC said they had signed a memorandum of understanding to "collaborate and bring advanced packaging and test capabilities to Arizona." Under the agreement, Amkor will be contracted to provide turnkey advanced packaging and test services to the Arizona TSMC plant.
This will be used to support TSMC's clients, "particularly those using TSMC's advanced wafer fabrication facilities in Phoenix." With Apple's chips reportedly being made at the facility, this would mean chips destined for future iPhone units and Mac models.
For TSMC and its clients, the agreement can help save time in production, since the chips can be made and packaged at the same place. Otherwise, the chips would have to be transported elsewhere in the Apple supply chain for packaging.
The two companies working together was practically a foregone conclusion, since Apple and Amkor announced a packaging facility was going to be built very close to TSMC's foundry in 2023. That partnership is expected to cost Amkor around $2 billion and introduce around 2,000 jobs to the area.
Like TSMC, Amkor has been a long-time partner with Apple, and has done so for over 12 years.
Read on AppleInsider
Comments
In the back of my mind, I'm troubled that a set of chipmaking facilities is in the Phoenix area potentially for the next 20 to 40 years, but hopefully they understand they will need to manage water and climate issues in a good way.
https://www.reuters.com/technology/amkor-build-2-billion-arizona-semiconductor-packaging-plant-2023-11-30/
I thought I remembered there being an AppleInsider article at the time, but perhaps I read about it elsewhere
EDIT: I see the original announcement acknowledged in the AI article, and now seeing the blue link to the original story here.
There's presumably another US smartphone manufacturer who will be taking advantage of the Amcor/TSMC tie-in, good news for the US chip industry. Perhaps they can make a go of it despite doubts.
South Korea's Samsung is partnering with foundry rival Taiwan Semiconductor Manufacturing Co. (TSMC) to jointly develop a next-generation artificial intelligence chip, identified as HBM4, intended to benefit both companies.