TSMC Partners with Amkor to Produce Apple A16 Chip

Amkor Technology, a leading global provider of semiconductor packaging and testing services, has announced an expanded partnership with Taiwan Semiconductor Manufacturing Company (TSMC). On October 4th, the companies signed a memorandum of understanding to provide advanced packaging and testing services in Arizona. This collaboration will incorporate cutting-edge technologies such as Integrated Fan-Out (InFO) and Chip on Wafer on Substrate (CoWoS), further strengthening the local semiconductor ecosystem.

Industry experts speculate that TSMC's first Arizona facility will produce 4nm process chips, potentially including Apple's A16 chip, aligning with the milestones outlined in the U.S. CHIPS Act. By leveraging outsourced semiconductor assembly and test (OSAT) services, TSMC aims to localize the production of advanced process chips, a crucial requirement of the CHIPS Act.

Amkor is committed to collaborating closely with TSMC to determine the appropriate packaging technologies, including InFO and CoWoS, to meet the capacity demands of shared customers. With its headquarters located in Arizona, Amkor is strategically positioned to work with TSMC, having announced a $2 billion investment to establish a facility in the state last November. According to the memorandum of understanding, TSMC will utilize the new plant in Peoria, Arizona, which will provide turnkey advanced packaging and testing services, specifically for clients of TSMC's advanced wafer manufacturing facility in Phoenix.

Reports indicate that TSMC's Fab 21 in Arizona is currently manufacturing chips for the Apple A16 system-on-chip (SoC) used in the iPhone 14 Pro. As production capacity continues to ramp up, output is expected to rise, with the likelihood that U.S.-manufactured Apple chips will debut next year, given Apple's established preference for InFO packaging.

Tech analysts suggest that TSMC's 4nm advanced process technology will meet some demands from U.S. customers, particularly in consumer products, including AMD's AI PC chips and NVIDIA's B-series GPUs. The second facility is anticipated to utilize a 3nm process to continue addressing customer requirements; however, reports indicate that costs may be approximately 30% higher than in Taiwan.

As global semiconductor companies increasingly rely on advanced packaging technologies to achieve breakthroughs in artificial intelligence, high-performance computing, and mobile applications, TSMC's Senior Vice President of Business Development, Dr. Kevin Zhang, emphasized the importance of collaborating with trusted strategic partners like Amkor. This partnership will diversify production bases and maximize the value of TSMC's wafer manufacturing facility in Phoenix, ultimately providing enhanced services to customers in the United States.