Samsung Electronics and TSMC are building semiconductor ecosystems around their foundry plants in the United States, engaging in a fierce battle to secure customer orders.
According to industry sources on Dec. 5, Amkor, the world’s second-largest packaging company, announced on April 30 an investment of US$2 billion (approximately 2.6 trillion won) to construct a packaging plant near TSMC’s Arizona factory in the U.S. Packaging involves processes like connecting multiple chips or stacking individual chips higher.
An Amkor official stated, “We will package Apple chips produced at the nearby TSMC Arizona foundry in our new factory. Apple will be both the first and largest customer for this plant.” TSMC plans to invest US$40 billion by 2025 to build a foundry in Phoenix, Arizona. The ecosystem entails TSMC manufacturing Apple-designed chips and Amkor packaging them. The area in Arizona where TSMC’s foundry and Amkor’s packaging plants will be located is already a hub for semiconductor companies like Intel, ASML, and Applied Materials.
There are predictions that the TSMC-Amkor alliance will impact Samsung Electronics. Samsung is constructing a foundry in Taylor, Texas, with an investment of US$17 billion. This plant is expected to start mass production of chips in the second half of next year. The TSMC Arizona plant is already in a fierce battle for foundry orders with Samsung, making the TSMC-Amkor alliance unwelcome news.
It’s also of interest whether Samsung Electronics will respond to the TSMC-Amkor alliance by setting up packaging facilities at its Taylor plant. The company established an Advanced Packaging (AVP) team at the end of last year and also introduced 2.5D and 3D packaging technologies. Recently, Samsung revealed its “GDP (GAA-DRAM-PACKAGING) strategy,” which offers everything from memory supply to foundry and packaging. There’s growing interest in whether Samsung’s Taylor plant will become the frontline base in its GDP strategy to counter the TSMC-Amkor alliance.
Amkor’s investment is also expected to influence Samsung Electronics’ strategy for raising capital for its U.S. investments. Amkor plans to request subsidies under the U.S. government’s CHIPS Act, which provides US$52 billion in funding.