Apple Expands US Manufacturing with TSMC and Amkor in Arizona

Apple is getting into U.S. chip manufacturing with a new collaboration between its primary chip supplier, TSMC, and packaging company Amkor. On Thursday, the two companies agreed to work together to improve the production, packaging, and testing of chips at Amkor’s new facility in Peoria, Arizona.

The partnership can use the manufacturing process of TSMC’s wafer fabrication facility in Phoenix and Amkor’s packaging plant. Under the agreement, TSMC will use Amkor’s packaging and testing services to support its customers.

Apple has already confirmed that Amkor will package its silicon chips produced at the nearby TSMC facility. This move is in line with Apple’s commitment to increasing domestic manufacturing capabilities, as highlighted by its operations chief, Jeff Williams, who stated, “Apple is deeply committed to the future of American manufacturing.”

Amkor plans to invest approximately $2 billion in this project, which can create over 2,000 jobs upon completion. The partnership comes shortly after reports indicated that TSMC had begun small-scale production of the A16 chip in Arizona—an essential component for devices like the iPhone 14 Pro and iPhone 15 models and probably for the upcoming iPhone SE 4.

How does it make sense? We have talked about everything about it here. Click to know more.

More here.