Amkor and TSMC Collaborate on Arizona Semiconductor Expansion: A Partnership for the Future of Computing and Communications.

TSMC is collaborating with Amkor to establish a new semiconductor facility in Arizona, set to begin operations in early 2028. As the world's largest dedicated chip foundry, TSMC has a market share of around 66% and a customer base including Apple, AMD, and Nvidia. The company has a strong financial position, with a revenue of $107.4 billion and a 39.5% one-year revenue growth rate. TSMC's operating margin is 48.72% and net margin is 42.46%, with a conservative debt-to-equity ratio of 0.2.

Arizona, August 29, 2025 - Taiwan Semiconductor Manufacturing Company (TSMC) and Amkor Technology, Inc. (Nasdaq: AMKR) have announced plans to establish a new semiconductor facility in Arizona. The facility, scheduled to begin operations in early 2028, marks a significant collaboration between the two industry leaders to bolster the U.S. semiconductor supply chain.

Facility Details and Approval
The new facility will be constructed on a 104-acre site within the Peoria Innovation Core in north Peoria, Arizona. The Peoria City Council has unanimously approved a land swap and an amended development agreement, allowing Amkor to exchange its previously designated 56-acre parcel within the Five North at Vistancia community. Construction is set to commence within days, with production expected to start in early 2028 [1].

Economic Impact
The new facility is anticipated to bring a $2 billion investment and 2,000 new jobs to the community. "This outcome demonstrates the power of strong partnerships and smart long-term planning," said Peoria Mayor Jason Beck. Amkor's investment underscores the company's commitment to U.S.-based chip manufacturing and its role in strengthening the U.S. semiconductor supply chain [1].

Water Recycling Plant
In addition to the new facility, TSMC is building a 15-acre water recycling plant at its Arizona site. The plant will recycle 85-90% of industrial wastewater into ultrapure water for chip production. This initiative reflects the semiconductor industry's struggle with water intensity and TSMC's efforts to address local water challenges [2].

Strategic Partnerships
The collaboration between TSMC and Amkor highlights the growing semiconductor ecosystem in Arizona. TSMC, known for its advanced manufacturing operations and 4-nanometer chips, will work with Amkor to provide high-volume manufacturing for industries such as computing, communications, and automotive. Amkor's strong track record of innovation and broad geographic footprint make it a valuable partner for TSMC [1].

Financial Performance
TSMC's strong financial position is evident in its recent financial performance. With a revenue of $107.4 billion and a 39.5% one-year revenue growth rate, the company maintains a leading market share of around 66% in the semiconductor foundry market. TSMC's operating margin is 48.72%, and its net margin is 42.46%, reflecting its robust financial health. The company's conservative debt-to-equity ratio of 0.2 underscores its prudent financial management [3].

Conclusion
The establishment of the new semiconductor facility in Arizona by TSMC and Amkor represents a significant milestone in the U.S. semiconductor industry. The collaboration not only strengthens the domestic semiconductor supply chain but also highlights the industry's commitment to sustainable practices, such as water recycling. As the global demand for advanced chips continues to grow, the partnership between TSMC and Amkor is poised to play a pivotal role in meeting these demands.

References:
[1] https://finance.yahoo.com/news/amkor-announces-u-semiconductor-advanced-030500868.html
[2] https://www.asiabusinessoutlook.com/news/tsmc-builds-arizona-water-recycling-plant-for-chip-fab-nwid-9643.html
[3] https://stocktwits.com/news-articles/markets/equity/apple-reportedly-secures-nearly-half-of-tsmc-2-nm-supply/chs67m6RdmS