Amkor headquarters in Arizona [Amkor]
TSMC is increasing the capabilities of its chip plant in Arizona by partnering with the US-based Amkor Know-how so as to add superior packaging and check capabilities. The transfer will lead to extra US-based Apple chip manufacturing sooner or later.
TSMC’s Arizona plant is simply getting began with its operations after 4 years of building, with the manufacturing of A16 chips on the facility in September. Nevertheless, whereas manufacturing the chips is one factor, it nonetheless must be packaged.
Chip packaging is likely one of the final steps in producing a usable chip that can be utilized in Apple’s {hardware}. Whereas TSMC makes the chip itself, chip packaging refers back to the protecting parts across the chip, that are additionally used to interface with a board.
On Thursday, Amkor and TSMC mentioned that they had signed a memorandum of understanding to “collaborate and bring advanced packaging and test capabilities to Arizona.” Beneath the settlement, Amkor can be contracted to offer turnkey superior packaging and check providers to the Arizona TSMC plant.
This can be used to help TSMC’s shoppers, “particularly those using TSMC’s advanced wafer fabrication facilities in Phoenix.” With Apple’s chips reportedly being made on the facility, this is able to imply chips destined for future iPhone items and Mac fashions.
For TSMC and its shoppers, the settlement might help save time in manufacturing, because the chips could be made and packaged on the similar place. In any other case, the chips must be transported elsewhere within the Apple provide chain for packaging.
The 2 corporations working collectively was virtually a foregone conclusion, since Apple and Amkor introduced a packaging facility was going to be constructed very near TSMC’s foundry in 2023. That partnership is anticipated to value Amkor round $2 billion and introduce round 2,000 jobs to the realm.
Like TSMC, Amkor has been a long-time companion with Apple, and has finished so for over 12 years.