TSMC US Chip Packaging Plant Set for 2029 Launch

According to a senior executive from TSMC, the company plans to build an advanced semiconductor packaging facility in Arizona, United States, with the goal of completing construction before 2029.

Modern AI chips, such as those used in NVIDIA products, are not single monolithic dies but are instead assembled through advanced packaging technologies that integrate multiple chiplets into a single high-performance system. This packaging stage has become a critical bottleneck across the AI semiconductor supply chain, including for major GPU and accelerator developers.

TSMC previously stated during its January earnings call that it had applied for construction permits for an advanced packaging facility within its existing Arizona campus, though no specific production timeline was disclosed at the time. During a recent industry event in Santa Clara, company executives confirmed that construction is now underway.

Kevin Zhang, Senior Vice President of Global Sales and Deputy COO at TSMC, said ahead of the event that the company is actively expanding its Arizona capabilities. “Our goal is to establish CoWoS and 3D-IC advanced packaging capabilities in Arizona by 2029,” he noted, referring to two key technologies widely used in high-performance AI chip production.

Currently, companies including Apple and NVIDIA already source wafers from TSMC’s Arizona fabs, but many of these chips still need to be shipped back to Taiwan for final packaging and assembly, creating additional logistics complexity and lead time.

In parallel, Amkor Technology announced last year that it is collaborating with Apple and NVIDIA to build a packaging and testing facility in Arizona, targeting completion by mid-2027 and production start in early 2028—potentially ahead of TSMC’s timeline. Amkor and TSMC also disclosed a cooperation agreement in 2024 to introduce advanced packaging capabilities in Arizona, although detailed implementation plans have not yet been made public.

Kevin Zhang added that collaboration efforts between TSMC and Amkor are ongoing. “We are working with them to explore what technical capabilities they can provide to accelerate certain manufacturing processes in the United States,” he said. “There are still uncertainties, but we are evaluating all possibilities to build a more diversified and resilient manufacturing footprint.”