TSMC, Amkor seal 10-year Arizona packaging pact

TSMC and Amkor Technology have signed a 10-year agreement to deepen their collaboration on advanced semiconductor packaging and testing in Arizona. Under the deal, TSMC will procure packaging and testing services from Amkor, creating a longer-term operating framework tied to both companies’ buildout in the state.

The strategic goal is to add advanced packaging capacity closer to TSMC’s Arizona fabrication plans and Amkor’s packaging and test campus, reducing the need to move chips through overseas facilities for back-end processing. The companies said the arrangement is intended to improve time to market, support customers with more integrated production, and strengthen the resilience of the U.S. semiconductor supply chain.

The partnership also reflects rising demand for advanced packaging as chips for artificial intelligence, high-performance computing and other advanced electronics become more complex. Amkor has been building its Arizona campus, while TSMC is developing leading-edge fabs in the state, and the two companies are positioning those investments as complementary pieces of a broader domestic manufacturing ecosystem.