Amkor, the world’s second biggest independent outsourced semiconductor assembly and test (OSAT) provider, has actually revealed their intent to develop a brand-new innovative chip product packaging center in the U.S. Bring a price of around 2 billion dollars, the plant in Arizona will mainly serve to package chips produced by TSMC at its Fab 21 close-by.
Including an intriguing (and uncommon) wrinkle to the statement, the infamously tight-lipped Apple likewise released its own news release, formally verifying that it is set to end up being the biggest consumer of the center. All of which has actually considerably raised the profile of the chip product packaging plant.
Big Product Packaging Center
The prepared center will live in a substantial production school covering 55 acres near Peoria, Arizona. Amkor does not divulge scheduled production capability of the plant or innovations that it will support, however it states that it will serve vehicle, high-performance computing, and mobile applications, so we can anticipate it to support a vast array of 2.5 D and 3D product packaging innovations.
On the other hand, the business states that it its approaching center will include 500,000 square feet (46,451 square meters) of cleanroom area when it is totally constructed and geared up. To some degree, the $2 billion financial investment indicates that the plant will be rather large. For instance, TSMC’s upcoming innovative production center anticipated to come online in 2027 is set to cost $2.87 billion. The center is anticipated to end up being functional in 2025– 2026 and use some 2,000 individuals.
Amkor plainly intends that its Peoria center will serve customers that produce chips at TSMC’s Fab 21, which will considerably streamline their supply chain and will include worth for those who require to establish, produce, and bundle chips in the United States. What is especially crucial is that Amkor and Apple state they had actually operated in close collaboration to create the tactical and production capability elements of the Peoria center.
” Apple is dedicated to assist develop a brand-new age of innovative production, right here in the United States,” stated Jeff Williams, Apple’s chief running officer in a declaration. “Apple and Amkor have actually interacted for more than a years product packaging chips utilized thoroughly in all Apple items, and we are delighted that this collaboration will now provide the biggest OSAT advanced product packaging center in the United States.”
This is where it gets intriguing.
Customized for Apple’s Requirements
This partnership recommends that the factory will be particularly tailored towards conference Apple’s requirements in the next couple of years. Apple will be the very first and main consumer of this center, using it for product packaging and screening chips from TSMC’s close-by Fab 21.
” Apple silicon has actually opened brand-new levels of efficiency for our users, allowing them to do things they might never ever do in the past, and we are delighted that Apple silicon will quickly be produced and packaged in Arizona,” stated Williams.
TSMC’s Fab 21 stage 1 is now set to begin making chips on 4 nm and 5 nm-class procedure innovations often in 2025 Following this, the stage 2 of Fab 21 is anticipated to begin producing chips on TSMC’s 3 nm-class innovations often in 2026. The timing of Amkor’s center ending up being functional aligns with these advancements, showing that Apple will have a considerable requirement for product packaging 3nm and 4nm-class chips around that time.
Generally, Apple is the very first business to embrace TSMC’s leading-edge innovations for usage in high-volume items. For instance, for this year’s iPhone 15 Pro mobile phones and MacBook Pro laptop computers, Apple utilizes TSMC’s N3B fabrication procedure to make the A17 Pro, M3 Pro, and M3 Max SoCs. However at the exact same time Apple hasn’t done a wholesale cutover to N3B; the business continues to utilize their N4-based A16 Pro and N5P-based M2 SoCs for its particular current-generation iPhone 15 and MacBook Air items. So Apple’s overall chip requires stay spread over numerous generations of nodes.
Eventually, with TSMC’s United States fabulous set to stay a node behind its Taiwan fabs, the considerable dedication from Apple to utilize Amkor’s United States product packaging plant is a strong indication that the business will continue to make considerable usage of older nodes moving forward.
CHIPS Financing
Lastly, to make sure the innovative product packaging job’s success in the U.S., Amkor has actually made an application for financing from the CHIPS program, which concentrates on innovative chip product packaging. The center is a strong prospect for this federal government financing, as it will substantially enhance the American semiconductor supply chain and allow TSMC’s Fab 21 clients in Arizona to gain access to advanced product packaging approaches without needing to carry their wafers out of state.