Amkor's $2 Billion Chip Packaging Facility in Arizona Primarily for Apple
Amkor, recognized as the world's second-largest independent outsourced semiconductor assembly and test (OSAT) service provider, has announced a major initiative: the construction of a new, advanced chip packaging facility in the United States. This facility, with an estimated cost of around $2 billion, is set to be located in Peoria, Arizona, and is positioned to primarily serve Apple, its largest customer.
Strategic Location and Size
The facility is planned to span a vast 55-acre manufacturing campus near Peoria, Arizona. Although specific production capacities and technologies haven't been disclosed, the site will cater to a variety of sectors including automotive, high-performance computing, and mobile applications. It is expected to support diverse 2.5D and 3D packaging technologies. The cleanroom space alone is projected to be about 500,000 square feet (46,451 square meters), indicating the magnitude of this project.
Operational Timeline and Employment Opportunities
The plant is slated to become operational between 2025 and 2026, with the aim of employing approximately 2,000 people. This development aligns well with TSMC's Fab 21 in the vicinity, which is anticipated to streamline the supply chain for clients producing chips at TSMC’s facility.
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Unique Partnership with Apple
This endeavor is marked by a notable partnership between Amkor and Apple, with Apple confirming its role as the principal customer for the facility. Apple's commitment to this project is part of its larger initiative to build advanced manufacturing capabilities in the U.S.
Jeff Williams, Apple's COO, expressed excitement about the partnership, highlighting that Apple silicon will be produced and packaged in Arizona. This collaboration suggests that the factory will primarily cater to Apple’s requirements, especially in packaging and testing chips from TSMC's Fab 21.
Synchronized with TSMC's Developments
TSMC's Fab 21 is expected to start producing 4 nm and 5 nm-class chips around 2025, with a subsequent phase for 3 nm-class technologies around 2026. The timing of Amkor's facility's operational start aligns with these developments, indicating a strategic plan to meet Apple's packaging needs for these advanced chips.
Apple's Commitment to Older Nodes
Given TSMC's U.S. fab's node position relative to its Taiwan fabs, Apple's significant investment in Amkor’s facility implies a continued reliance on older nodes for its future products.
CHIPS Funding and Strengthening the U.S. Supply Chain
Amkor has applied for funding under the CHIPS program, which focuses on advanced chip packaging. This initiative is a strong candidate for government support, as it aims to fortify the American semiconductor supply chain and provide TSMC’s customers in Arizona with state-of-the-art packaging services locally.
Conclusion
Amkor's $2 billion chip packaging facility in Arizona, primarily serving Apple, is a significant step forward in bolstering the U.S. semiconductor industry. This move not only strengthens the supply chain but also signals a strategic alignment between major tech giants in adapting to the evolving demands of the semiconductor market.
