Malcolm Owen
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.
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.
William Gallagher
Andrew Orr
Chip Loder
4 Comments
Great news! Let’s keep the homegrown chip production ball rolling.
Yes. Very nice.
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.
So they are making A16 chips or the type of chip for the the A16; just N4P chips in general? I guess since apple still sells the base iPhone 15 it would make sense although to keep producing them sounds like a new product with A16 such as base iPad, Apple TV, or I guess if they don’t want to keep putting Apple Watch chips they switch the homepods to A16 or the rumored screen version.
It's not new. This partnership, or "understanding" as the case may be, was originally reported in November last year.
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.
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.