HVM OSAT In Peoria, AZ
Commerce Secretary Gina M. Raimondo has identified advanced packaging as a major area of focus for the US government’s effort to rebuild American semiconductor manufacturing. The Commerce Department emphasized that developing robust advanced packaging manufacturing capacity and capability is a key priority and essential to the success of the CHIPS program.
In late July, Amkor Technology, Inc. signed a preliminary memorandum of terms with US Department of Commerce for an Amkor Arizona Advanced Packaging and Test Facility to receive funding as part of the CHIPS Act.
Amkor announced in November 2023 its plans to build its first domestic, high-volume manufacturing outsourced semiconductor assembly and test (HVM OSAT) facility in the US in Peoria, Arizona. Amkor plans to invest approximately $2 billion and employ approximately 2,000 people at the new facility. Upon completion, this will be the largest outsourced advanced packaging and test facility in the United States.
Amkor has secured approximately 55 acres with the intent to build a state-of-the-art manufacturing campus with more than 500,000 square feet of clean room space. The first phase of the manufacturing facility is targeted to be ready for production within three years.
The terms of the agreement with CHIPS include:
- Up to $400 million in proposed direct funding
- Access to $200 million in proposed loans
Amkor also plans to take advantage of the Department of the Treasury’s Investment Tax Credit, which is expected to be up to 25% of qualified capital expenditures.
Amkor and TSMC have been working closely to provide high-volume, leading-edge technologies for advanced packaging and testing of semiconductors to support critical markets such as high-performance computing, automotive, and communications. The companies’ shared vision is to enable seamless technology alignment for customers across a global manufacturing network.
Amkor Technology, Inc. founded in 1968, is a strategic manufacturing partner for the world’s leading semiconductor companies, foundries, and electronics OEMs. Amkor provides turnkey manufacturing services for the communication, automotive and industrial, computing, and consumer industries, including but not limited to smartphones, electric vehicles, data centers, artificial intelligence, and wearables.
The initial phase of the Peoria, Arizona, facility is expected to be operational within three years, in 2027. The adjacence of the OSAT plant to Intel Foundry’s and TSMC’s fabs in Arizona enables chip designers that use the said contract chipmakers to package their chips in the state.
It is expected that the first chips that the OSAT facility will package will be made on TSMC’s N5, N5P, N4, N4P, and N4X production nodes.
Apple will be the facility’s first and largest customer. Apple has publicly endorsed Amkor’s HVM OSAT facility in Peoria and said that it would use TSMC and Amkor services in Arizona to make and package its chips. Given the company’s usual tight-lipped attitude, a commitment to TSMC and Amkor is a significant move, perhaps aimed at persuading the U.S. government to fund the projects.
Although Amkor has not shared exactly what packaging/assembly operations they will be doing in the AZ facility, the company is known for its broad portfolio of packaging options(Figure 1).
Samsung in Taylor Tx
Following the announcement of a $6.4 billion investment from the CHIPS and Science Act, Samsung has increased its planned investment in Taylor, Texas to $40B.
The new facility will produce advanced logic chips for mobile, 5G, high-performance computing (HPC), and artificial intelligence (AI) purposes. The new Texas plants will include facilities dedicated to R&D and will have the ability package the chips. The facility plans to begin mass production in 2025.
Samsung has also donated $1 million for the construction of a career and technical education center at Taylor High School to help invest in equipment and training for students who want to pursue careers in the semiconductor field.
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