Amkor, TSMC sign agreement to bring chip packaging into Peoria

By Philip Haldiman
Mail | X: @PhilipHaldiman

Amkor Technology and Taiwan Semiconductor Manufacturing Co. have signed a memorandum of understanding to collaborate and bring advanced packaging and test capabilities to Arizona, continuing to pave the path for a microchip supply chain running through Peoria.

While an MOU is not legally binding, it outlines the companies’ intentions of working together.

Deputy City Manager Mike Faust said the MOU is great news that supports Peoria’s economic development strategy of growing the target markets of semiconductor and microelectronics.

“The synergy between Amkor and TSMC further highlights the possibilities for the future of our city’s employment base in these sectors,” he said.

Earlier this year, Amkor signed a development agreement with the city of Peoria solidifying the city as an important stop on the Taiwan Semiconductor microchip supply chain in the northwest Valley.

Among other services, Amkor will package and test microchips for Cuppertino, California-based Apple Inc. that nearby TSMC will manufacture at its north Phoenix fab, assuring a bulk of the process will happen close to the manufacturing point.

Peoria resident Judi Smith said that while Amkor’s presence and collaboration with TSMC may offer some benefits to Peoria, it comes with significant potential trade-offs for local businesses and residents.

"The city is moving quickly on projects like this, often without appropriate consideration of public input, leaving citizens feeling excluded," she said. "In a tough economy, using taxpayer funds to provide large incentives and tax breaks to corporations seems inappropriate, especially as local businesses face increased fees and taxes. Further, businesses like Amkor, with a heavy demand for water, will strain local resources, with the city committed to providing up to 2 million gallons of water per day."

Although Amkor has not started construction on land in the commercial core of Vistancia, where it plans to build its 56-acre fab, the company plans to close on the property in December. Amkor did not respond questions regarding their newly-signed agreement.

Under the MOU, TSMC will contract advanced packaging and test services from Amkor’s planned facility in Peoria, and TSMC will leverage these services to support its customers, particularly those using TSMC’s advanced wafer fabrication facilities in Phoenix, according to a news release.

“The agreement underscores the shared commitment to supporting customer requirements for geographic flexibility in front-end and back-end manufacturing, as well as fostering the development of a vibrant and comprehensive semiconductor manufacturing ecosystem in the United States,” the release stated. “The companies’ shared vision is to enable seamless technology alignment for customers across a global manufacturing network.”

Amkor officials tout the company will bring a $2 billion multiphase investment to Peoria. They plan to invest at least $700 million during two phases and eventually employ 850 full-time employees.

City officials say it eventually will be the city’s largest private employer, and the 500,000-square-foot facility will be the country’s largest outsourced advanced microchip packaging facility.

Amkor President and CEO Giel Rutten in a news release said the expanded partnership underscores Amkor’s commitment to driving innovation and advancing semiconductor technology while ensuring resilient supply chains.

“Amkor is proud to collaborate with TSMC to provide seamless integration of silicon manufacturing and packaging processes through an efficient turnkey advanced packaging and test business model in the United States,” Rutten said in the release.

Amkor was founded in 1968, serving as an outsourcer of integrated circuit packaging and test services, and is a strategic manufacturing partner for semiconductor companies, foundries, and electronics manufacturers.

Kevin Zhang, TSMC’s senior vice president of business development and global sales, and deputy Co-COO, said in the release that TSMC is pleased to work side by side with Amkor to support them with a more diverse manufacturing footprint.

“We look forward to close collaboration with Amkor at their Peoria facility to maximize the value of our fabs in Phoenix and provide more comprehensive services to our customers in the United States,” Zhang said.

Philip Haldiman can be reached at phaldiman@iniusa.org, or on X @philiphaldiman. We’d like to invite our readers to submit their civil comments, pro or con, on this issue. Email AZOpinions@iniusa.org.

Philip Haldiman
Senior News Editor | Peoria

phaldiman@iniusa.org

Meet Philip
Haldiman is an award-winning journalist who most recently took first place for investigative reporting in 2023 from Arizona Newspapers Association. He joined Independent Newsmedia, Inc., USA, in 2015, covering Sun City West his first year. Since 2016, he has covered the city of Peoria. Prior to coming to INI, he was a reporter with The Arizona Republic for seven years, covering numerous cities throughout the Valley. Before that, he was a freelance writer.

Community: Haldiman spearheads the Peoria Independent Hometown Heroes Awards program, honoring local individuals and businesses that give back to the community. He has hosted local candidate forums over the years and is a member of the Society of Professional Journalists. Haldiman also served as a member of the Journalism Program Community Advisory Board at Glendale Community College. Outside journalism, Haldiman served as a member of the city of Peoria Complete Count Committee for the Census, 2019-2020. Lastly, he has served as a member of his HOA governing board since 2021.

Education: Arizona State University with a BA in Journalism and Mass Communications and a BA in Theater. 

Random Fact: Haldiman is a fourth-generation Arizonan as well as wrote and produced an autobiographical comic book about his time spent in Hollywood and his life as a cult film star.

Hobbies: He enjoys hiking Arizona’s mountainous landscapes and is currently working on a play for the stage.