Amkor Technology and TSMC have signed a memorandum of understanding to expand collaboration at Amkor’s $1.2 billion Peoria, Arizona advanced packaging facility — the first of its kind in the U.S. The partnership, announced in May 2024, targets fan-out wafer-level packaging and aims to add 300 jobs by end-2025. It supports U.S. CHIPS Act goals and addresses the acute shortage of North American advanced packaging capacity, which accounts for only 12% of global supply. Lead times for domestic customers are projected to fall from 16–20 weeks to under 8 weeks.
According to www.yourvalley.net, Amkor Technology and Taiwan Semiconductor Manufacturing Company (TSMC) have signed a memorandum of understanding to deepen collaboration at Amkor’s advanced packaging facility in Peoria, Arizona — reinforcing the city’s role in the U.S. semiconductor supply chain.
Strategic partnership formalized
The agreement, announced in late May 2024, establishes a framework for joint development, capacity expansion, and technology transfer focused on fan-out wafer-level packaging (FOWLP) and other advanced heterogeneous integration solutions. Under the terms, Amkor will allocate dedicated production lines at its Peoria campus to support TSMC’s U.S.-based customers, including those serving defense, aerospace, and high-performance computing sectors. The facility — which began operations in 2023 — is Amkor’s first U.S.-based advanced packaging site and represents a $1.2 billion capital investment by the company.
Local economic impact and workforce development
The partnership is expected to accelerate hiring at the Peoria site, where Amkor currently employs over 1,200 people. According to the report, the company plans to add at least 300 new engineering and technical roles by the end of 2025. To support this growth, Amkor has partnered with Maricopa County Community College District and Arizona State University to launch a semiconductor technician certification program — one of three such initiatives launched across Arizona since Q2 2024.
Geopolitical and industrial context
The deal aligns with broader U.S. industrial policy goals under the CHIPS and Science Act, which authorized up to $52.7 billion in federal funding for domestic semiconductor manufacturing and R&D. It also follows TSMC’s $40 billion investment in its Phoenix-area fabs — the largest foreign direct investment in Arizona history — and complements Intel’s $20 billion expansion in Chandler. Unlike earlier U.S. fab announcements focused on front-end wafer fabrication, Amkor’s Peoria operation addresses a critical bottleneck: back-end packaging, testing, and assembly — a segment where global capacity remains concentrated in Asia. As of 2024, only 12% of global advanced packaging capacity resides in North America, according to industry data cited by the source.
Supply chain implications for practitioners
For supply chain professionals, the Amkor–TSMC pact signals a tangible shift toward regionalization of semiconductor backend services. Packaging lead times for U.S. chip designers have historically averaged 16–20 weeks when relying on Asian subcontractors; the Peoria hub aims to reduce that to under 8 weeks for qualified U.S.-based customers. This compression supports just-in-time delivery models and reduces exposure to port congestion and geopolitical transit risks — particularly through the Strait of Hormuz and South China Sea. The report notes that Amkor’s Peoria site is already certified to ITAR and EAR standards, enabling it to handle export-controlled designs for Department of Defense contractors.
Source: yourvalley.net
Compiled from international media by the SCI.AI editorial team.
