June 19th, 2026 — TSMC and Amkor Technology have signed a 10-year agreement to expand advanced semiconductor packaging and testing capacity in the United States, supporting the development of a more complete domestic chip-manufacturing supply chain.
Under the agreement, TSMC will procure advanced packaging and testing services from Amkor. The two companies will also work together to expand capacity and support the evolving requirements of shared customers.
The partnership will focus on Arizona, where TSMC is building a large semiconductor manufacturing cluster and Amkor is developing a major advanced packaging and testing campus.
By combining TSMC’s front-end wafer-manufacturing capabilities with Amkor’s back-end assembly and testing services, the companies aim to provide customers with a more integrated U.S.-based semiconductor production flow.
The agreement addresses one of the main gaps in the American semiconductor ecosystem.
While significant investment has been directed toward constructing advanced wafer fabs in the United States, much of the industry’s advanced packaging capacity remains concentrated in Asia. As a result, wafers manufactured in the United States may still need to be shipped overseas for packaging, assembly and testing before being delivered to customers.
The TSMC-Amkor partnership is intended to reduce this dependency.
Amkor CEO Kevin Engel said the agreement represents an important next step in the companies’ relationship and will help provide customers with a complete U.S. supply chain extending from advanced silicon manufacturing to fully tested and packaged semiconductor devices.
The geographic proximity of the companies’ Arizona operations should also help shorten transportation routes, reduce cycle times and simplify coordination between wafer fabrication and packaging.
The agreement comes as advanced packaging becomes increasingly important for artificial intelligence and high-performance computing applications.
Modern AI accelerators are frequently assembled from multiple semiconductor dies rather than manufactured as a single monolithic chip. A typical device may combine compute dies, I/O components, networking functions and several stacks of high-bandwidth memory within one package.
Connecting these components requires highly sophisticated packaging technologies capable of delivering:
Advanced packaging has therefore evolved from a relatively conventional manufacturing stage into a major factor determining the performance, power efficiency and cost of a semiconductor system.
The growing size and complexity of AI processors have also created strong demand for technologies such as 2.5D packaging, 3D integration and chip-on-wafer-on-substrate, commonly known as CoWoS.
The new 10-year agreement expands on a memorandum of understanding announced by TSMC and Amkor in October 2024.
Under the earlier arrangement, the companies agreed to collaborate on advanced packaging and testing in Arizona. TSMC planned to contract turnkey packaging and testing services from Amkor’s facility in Peoria, with the services supporting customers using TSMC’s nearby Phoenix fabs.
The companies also planned to collaborate on several advanced packaging technologies, including integrated fan-out and CoWoS.
The latest agreement creates a longer-term commercial framework under which TSMC can procure services from Amkor while the two companies coordinate their future capacity expansions.
The extended duration of the agreement may provide greater visibility for both companies as they invest in expensive manufacturing equipment, cleanroom capacity and process qualification.
Amkor is developing an advanced packaging and testing campus in Peoria, Arizona.
The facility is expected to serve customers in markets including artificial intelligence, high-performance computing, automotive electronics and communications infrastructure.
Amkor has previously identified proximity to TSMC’s Arizona operations as one of the strategic advantages of the location. The facility is intended to support advanced packaging processes that have historically been carried out mainly in Asia.
The company has also announced advanced-packaging cooperation with several major semiconductor customers, demonstrating the growing demand for U.S.-based back-end manufacturing.
By establishing production close to TSMC’s wafer fabs, Amkor could receive processed wafers, perform assembly and packaging, conduct final testing and then deliver completed devices without the products leaving the United States.
TSMC’s first Arizona fab is already in mass production, while its second fab is scheduled to begin volume production in 2027. Construction of a third fab has also started.
The company initially committed approximately $65 billion to the three-fab project. It subsequently announced plans for an additional $100 billion of investment in the United States.
The expanded plan includes:
The total planned U.S. investment therefore reaches approximately $165 billion.
TSMC’s cooperation with Amkor may provide additional packaging capacity before all of TSMC’s own planned U.S. packaging facilities become operational.
It could also give TSMC greater flexibility by allowing the foundry to combine internal packaging capacity with services provided by a major outsourced semiconductor assembly and test supplier.
The agreement highlights the growing importance of collaboration between foundries and outsourced semiconductor assembly and test companies.
Historically, wafer fabrication and packaging were often managed as separate parts of the semiconductor value chain. However, advanced chiplet-based systems require much closer cooperation between chip design, wafer manufacturing, packaging and testing.
Package architecture can now influence how individual dies are designed, which process nodes are selected and how the completed system manages power, bandwidth and heat.
Closer collaboration between TSMC and Amkor may allow customers to coordinate these decisions earlier in the product-development process.
It may also enable a more efficient operating model in which TSMC focuses on advanced wafer fabrication while Amkor provides scalable packaging and testing capacity based on TSMC-qualified technologies.
For customers, the agreement could create several potential benefits.
A more localized supply chain may reduce international transportation requirements and improve production visibility. It could also help customers meet internal or government requirements concerning domestic semiconductor manufacturing.
The arrangement may be particularly relevant to companies developing products for AI infrastructure, data centers, automotive systems, communications and other strategically important applications.
However, establishing a complete U.S. advanced-packaging ecosystem will require more than constructing factories. The companies will also need to qualify production processes, install specialized equipment, develop local suppliers and recruit engineers with relevant packaging expertise.
The 10-year duration of the agreement indicates that both companies view this as a long-term industrial effort rather than a short-term response to current AI demand.
The partnership reflects a broader shift in the semiconductor industry.
Leading foundries are no longer competing only on transistor density and process-node performance. Their ability to offer advanced packaging, chiplet integration, testing and system-level manufacturing is becoming an equally important competitive factor.
TSMC has built a strong position in advanced packaging through its 3DFabric portfolio and CoWoS technologies. Amkor contributes decades of experience in high-volume semiconductor assembly and testing.
Combining these capabilities in Arizona could help both companies serve customers seeking an end-to-end U.S. production option.
The success of the partnership will depend on how quickly the companies can establish qualified capacity and scale it to meet the rapidly growing packaging requirements of AI and high-performance computing devices.
Nevertheless, the agreement represents a significant step toward closing one of the most important remaining gaps in the U.S. semiconductor supply chain.
