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Leading Taiwanese foundry TSMC and packaging firm Amkor Technology have signed a 10-year advanced semiconductor deal in Arizona.
The agreement, which closes a domestic supply chain gap for advanced microchips in the US, firms up a memorandum of understanding signed in October 2024.
TSMC – which itself is investing more than – will buy advanced packaging and testing services from Amkor’s new $7bn facility in Peoria, which is partly supported by CHIPS Act funding ($400m to $600m), and slated to open early 2028.
The tie up enables it to offer its major US customers an ‘end-to-end’ domestic manufacturing cycle while Amkor benefits from guaranteed, high-volume demand.
Kevin Zhang, Senior Vice-President and Deputy Co-COO of TSMC, said it has a long history of experience working with Amkor globally in advanced packaging, and the collaboration is expected to enable a more integrated and resilient semiconductor supply chain.
Industrial gas major Linde is banking on rising semiconductor gas demand with its second fab now ramping and further facilities under discussion.
However artificial intelligence demand is for at least the next two years, TSMC said in an earnings call in April.
The company warned of emerging cost pressures across critical inputs including specialty gases and chemicals.
