A TSMC executive revealed that the company plans to open a chip packaging plant in Arizona, USA, by 2029. TSMC previously said on an earnings call in January that it was applying for a license and planned to build its first advanced packaging factory at an existing factory in Arizona, but TSMC executives said at a meeting in Santa Clara, California, on Wednesday local time that construction of the Arizona factory has begun.
"We are actively expanding capacity at our Arizona factory," said Kevin Chang, TSMC's co-chief operating officer and senior vice president. "We plan to build CoWoS and 3D-IC production capacity by 2029, which is still our goal," Zhang said, referring to TSMC's two packaging technologies with strong market demand.
Companies such as Apple and Nvidia already source chips from TSMC's Arizona factory, but many of those chips must be shipped back to Taiwan for packaging.
Amkor Technology said last year that it was working with Apple and Nvidia and planned to build a packaging factory in Arizona by mid-2027 and put it into production in early 2028, ahead of TSMC's plan. Amkor Technology and TSMC said in 2024 that they would cooperate to bring several of TSMC's advanced packaging technologies to Arizona, but the two companies have not disclosed specific details.
Kevin Zhang said that technical negotiations between Amkor Technology and TSMC are still in progress.
"We are working with them to understand what technical capabilities they can provide our customers to speed up the production of some products in the United States," Zhang Kaiwen said. "There are still some links that need to be adjusted. What I want to say is that we are actively exploring various possibilities to build a diversified production layout."
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