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Amkor to build chip packaging plant near TSMC Arizona facility

Amkor says Apple will be its first and largest customer

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(Amkor image)

(Amkor image)

TAIPEI (Taiwan News) — Amkor Technology announced Thursday (Nov. 30) that it will construct a US$2 billion (NT$62.87 billion) advanced chip packaging and testing plant in Peoria, Arizona.

The facility will package and test semiconductors meant for Apple made at the Taiwanese Semiconductor Manufacturing Co. (TSMC) fabs in Phoenix, which are also currently under construction, according to Reuters. Amkor said it would provide packaging and testing for chips meant for high-performance computing, automotive, and communications.

After the plant opens, Amkor added Apple will be its first and biggest customer, per Reuters. Apple also said that it is expanding its partnership with Amkor.

Amkor noted that its new Arizona plant will be the largest American outsourced advanced packaging facility. It said the plant will create around 2,000 new jobs, and that it expects the first phase of the facility to be ready for production within two or three years.

The company said it requested funding from the U.S. Commerce Department’s chip subsidy program, adding “these funds will be critical to Amkor’s project moving forward.”

TSMC is spending US$40 billion to build a 4nm process fab in Phoenix that is expected to be ready for commercial production in 2025, while a second 3nm facility is slated to be ready for volume production in 2026.