Samsung’s Concerns Rise Amidst TSMC-Apple-Amkor Collaboration in Arizona

TSMC is constructing a water fab in Arizona, USA, at the behest of Apple and certain other clients. In addition, TSMC plans to construct a packaging plant next to Amkor, the second-biggest semiconductor packaging and testing facility in the world. As per Korean Media, Samsung, which is also constructing plants and creating an ecosystem in the US, is uneasy as TSMC’s “Arizona Alliance” in the US takes shape. Amkor Technology, Inc., the largest IC packaging and testing service provider in the US, will invest US $2 billion to build an advanced factory in Arizona, serving Taiwan Semiconductor Manufacturing (TSMC) and Apple.

The research made it clear that Samsung will inevitably face threats from the partnership of Apple, TSMC, and Amkor. A chip war between Samsung and TSMC is inevitable given that the company’s second wafer factory in the US is situated in Tyler, Texas, and is scheduled to begin production in the later part of 2024. When the new plant opens, Amkor claims that Apple will be its first and biggest client. The company will offer sophisticated packaging and testing to enable high-performance computing, automobiles, and communications. Amkor stated that this will be the largest outsourced sophisticated packaging factory in the United States.

The TSMC-Amkor collaboration is predicted to impact Samsung Electronics. With a $17 billion investment, Samsung is building a foundry in Taylor, Texas. This factory is expected to start producing chips in large quantities in the second part of next year. The TSMC-Amkor cooperation is not pleasant news, as the TSMC Arizona unit is in tough competition with Samsung for foundry orders. It’s also intriguing to see if Samsung Electronics would establish packaging facilities at its Taylor facility in response to the TSMC-Amkor agreement.

At the conclusion of the previous year, the business developed 2.5D and 3D packaging technologies and formed an Advanced Packaging (AVP) team. Samsung recently unveiled its GDP (GAA-DRAM-PACKAGING) strategy, which includes foundry, packaging, and memory supply. Amkor’s investment is also expected to impact Samsung Electronics’ approach to financing its US ventures. Through the CHIPS Act, which offers money totaling $52 billion, Amkor intends to receive subsidies from the US government.

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