Friday, December 1st 2023

Apple to Become the First and Largest Customer of Amkor's Arizona Chip Packaging Plant

Apple has announced a partnership deal with Amkor, one of the leading chip packaging and testing manufacturers, which will build a two billion US Dollar silicon packaging facility in Peoria, Arizona. Being the only US-based OSAT (outsourced semiconductor assembly and test) provider, Amkor has decided to invest its funds and apply for the CHIPS Act, hoping to get a part of the funding from the US government's grant budget. The state-of-the-art facility in Arizona will feature over 500,000 square feet (46,452 square meters) of cleanroom space for packaging and testing chips. Using Amkor's latest technologies, the plant will support advanced computing, automotive, and communications chip packaging. It is tailored to meet the capacity needs of major customer Apple starting in 2025-2026. Apple will be the largest customer, with the Amkor facility packaging Apple-designed chips produced at the nearby TSMC wafer fabrication plant.

Building a chip packaging facility in the US with advanced packaging types means that the domestic manufacturing of advanced silicon is now possible across almost the entire supply chain, with OSAT now being present on US soil as well. In the initial phase, this partnership will enable domestic advanced packaging capabilities for leading-edge chips down to 3 nm nodes, which Apple plans to utilize for its A and M series of processors. Along with the creation of an estimated 2,000 local jobs, the investment serves as a boost to the local economy as well. Additionally, Amkor is TSMC's strategic partner, meaning future designs and packaging will cooperate without any delays.
Sources: Apple, Amkor
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31 Comments on Apple to Become the First and Largest Customer of Amkor's Arizona Chip Packaging Plant

#1
AnarchoPrimitiv
I've read about Arizon facing water shortages in the coming years, so I'm a bit surprised there's so much multi-billion dollar investment in the area considering that silicon chip manufacturing requires millions of gallons of fresh water. I'd love to be able to read the internal assessments by these companies on this issue.
Posted on Reply
#2
AleksandarK
News Editor
AnarchoPrimitivI've read about Arizon facing water shortages in the coming years, so I'm a bit surprised there's so much multi-billion dollar investment in the area considering that silicon chip manufacturing requires millions of gallons of fresh water. I'd love to be able to read the internal assessments by these companies on this issue.
Actually I would also like to see more about this. However modern silicon manufacturing usually recycles 99% of water they use IIRC (correct me if I am wrong). Just have to supply a big tank first.
Posted on Reply
#3
Space Lynx
Astronaut
AnarchoPrimitivI've read about Arizon facing water shortages in the coming years, so I'm a bit surprised there's so much multi-billion dollar investment in the area considering that silicon chip manufacturing requires millions of gallons of fresh water. I'd love to be able to read the internal assessments by these companies on this issue.
Indeed, but I expect in this case our tax payer money would bail them out
AleksandarKActually I would also like to see more about this. However modern silicon manufacturing usually recycles 99% of water they use IIRC (correct me if I am wrong). Just have to supply a big tank first.
If true, then yeah maybe water isn't as much of an issue as the news articles make it out to be.

www.bloomberg.com/opinion/articles/2021-02-25/making-chips-requires-lots-of-water-and-gulp-taiwan-has-a-drought

this source says otherwise though, but who knows how vetted that article is
Posted on Reply
#4
ThrashZone
Hi,
Yeah the worlds drinking water is not a good supply for stuff like this
Remove the salt from oceans and have as much as you want "global warming so plenty" pipe to suit business needs or move closer to oceans.
Posted on Reply
#5
trsttte
Apple will be the largest customer, with the Amkor facility packaging Apple-designed chips produced at the nearby TSMC wafer fabrication plant
Will the Arizona fab be state of the art nodes? I though those would remain in Taiwan for the time being.
ThrashZoneHi,
Yeah the worlds drinking water is not a good supply for stuff like this
Remove the salt from oceans and have as much as you want "global warming so plenty" pipe to suit business needs or move closer to oceans.
We already have problems with population centers always being concentrated near water shores, we need to invest in infrastructure (desalinating plants and piping) that allows for that not to happen and try to spread everyone currently near shores inlands
Posted on Reply
#6
b1k3rdude
So as the cost of the chip they wuill be purchasing will be more than the currently asian made veriety, so you can guereentee prices for the iToys will massivly increase.
Posted on Reply
#7
AleksandarK
News Editor
Space LynxIndeed, but I expect in this case our tax payer money would bail them out



If true, then yeah maybe water isn't as much of an issue as the news articles make it out to be.

www.bloomberg.com/opinion/articles/2021-02-25/making-chips-requires-lots-of-water-and-gulp-taiwan-has-a-drought

this source says otherwise though, but who knows how vetted that article is
“The average recycling rate of the water used in production processes reached 86.7% in 2019”
esg.tsmc.com/en/focus/greenManufacturing/waterResourceManagement.html

I was somewhat wrong but the numbers are good. The initial water source is the problem to supply as millions of liters are needed.
Posted on Reply
#8
thesmokingman
Fluff news as this is a decade away, 5 to build a plant and who knows another decade before they get to current parity?
Posted on Reply
#9
R-T-B
ThrashZoneHi,
Yeah the worlds drinking water is not a good supply for stuff like this
Remove the salt from oceans and have as much as you want "global warming so plenty" pipe to suit business needs or move closer to oceans.
You do know desalination takes power, lots of it, right?
Posted on Reply
#10
FoulOnWhite
R-T-BYou do know desalination takes power, lots of it, right?
It is now about 3 kWh/m3, Quite a lot i believe.
Posted on Reply
#11
trsttte
R-T-BYou do know desalination takes power, lots of it, right?
Sure does but we know how to generate power in more than a dozen different ways, clean water no so much :D
Posted on Reply
#12
Minus Infinity
AnarchoPrimitivI've read about Arizon facing water shortages in the coming years, so I'm a bit surprised there's so much multi-billion dollar investment in the area considering that silicon chip manufacturing requires millions of gallons of fresh water. I'd love to be able to read the internal assessments by these companies on this issue.
Since when have US state governments ever worried about water shortages for citizens? I'm sure the taxpayers can fund a pipeline from Canada or maybe they can pump the Colorado river even harder.
R-T-BYou do know desalination takes power, lots of it, right?
While you could use renewables to power it, the waste product that is generated is highly toxic to the environment and dumping it in the local water source is a recipe for environmental disaster.
Posted on Reply
#13
bug
Building a chip packaging facility in the US with advanced packaging types means that the domestic manufacturing of advanced silicon is now possible across almost the entire supply chain...
Mind sharing that supply chain? I'm genuinely curious.
Posted on Reply
#14
trsttte
Minus Infinitythe waste product that is generated is highly toxic to the environment and dumping it in the local water source is a recipe for environmental disaster.
That's true but sodium is also a good material for batteries, not as good as lithium but good enough and more stable.
Posted on Reply
#15
Wirko
Did everybody miss the basic info in the title? PACKAGING PLANT. And here I'm assuming that they aren't going to manufacture silicon or epoxy or other substrates there. Sure, the plant will consume water and generate toxic waste too, like factories in many industries do, but in that regard, it can't compare to silicon wafer manufacturing.
Posted on Reply
#16
Space Lynx
Astronaut
WirkoDid everybody miss the basic info in the title? PACKAGING PLANT. And here I'm assuming that they aren't going to manufacture silicon or epoxy or other substrates there. Sure, the plant will consume water and generate toxic waste too, like factories in many industries do, but in that regard, it can't compare to silicon wafer manufacturing.
TSMC has already started building a silicon manufacturing plant in Arizona, it's going to be an entire ecosystem in Arizona for chips. Most people on this thread already know this, hence the confusing rhetoric.

That being said, TSMC recently paused construction, due to protests by local/native Arizonians, because TSMC is importing almost all of its workers and its not benefiting the local economy with job boon as previously promised.
Posted on Reply
#17
kondamin
Minus InfinitySince when have US state governments ever worried about water shortages for citizens? I'm sure the taxpayers can fund a pipeline from Canada or maybe they can pump the Colorado river even harder.


While you could use renewables to power it, the waste product that is generated is highly toxic to the environment and dumping it in the local water source is a recipe for environmental disaster.
Desalinisation removes salts from water it doesn’t split salt into its base components, that requires a heck of a lot more power.

Depending on the type of desalinisation you will get dry salt and scale like in a coffee maker/ teapot / your boiler or brackish water.
if those are toxic they were toxic before they were processed.
Posted on Reply
#18
Wirko
kondaminDepending on the type of desalinisation you will get dry salt and scale like in a coffee maker/ teapot / your boiler or brackish water.
There are several types, those on an industrial scale output concentrated salt water (which can be dumped back into the sea through pipes), not dry salt. But that doesn't matter much for this discussion. What matters a bit more is: is there an efficient method of desalination that uses solar heat, not electricity?
kondaminif those are toxic they were toxic before they were processed.
Half a kilogram of table salt will kill a human if eaten, so yes, it is toxic.
Posted on Reply
#19
trsttte
kondaminif those are toxic they were toxic before they were processed.
There are scales to the level of toxic, in this case the point is that it can't simply be dumped back into the ocean because it would change the salt concentration and be terribly destructive for the ecosystem. Desalinating water generates a lot of salt, we can use a part of it but the majority today is just waste to be dealt with in some form or another
Posted on Reply
#20
thesmokingman
Space LynxTSMC has already started building a silicon manufacturing plant in Arizona, it's going to be an entire ecosystem in Arizona for chips. Most people on this thread already know this, hence the confusing rhetoric.

That being said, TSMC recently paused construction, due to protests by local/native Arizonians, because TSMC is importing almost all of its workers and its not benefiting the local economy with job boon as previously promised.
This. It's hilarious that they realized the local workforce sucks, wants way too much money, and again isn't skilled enough to pull it off.

The politicians who cried wolf, where's my SEMI?? These dopes never got down to brass tax on how this would work on a fundamental level given the US labor costs and issues.
Posted on Reply
#21
kondamin
trsttteThere are scales to the level of toxic, in this case the point is that it can't simply be dumped back into the ocean because it would change the salt concentration and be terribly destructive for the ecosystem. Desalinating water generates a lot of salt, we can use a part of it but the majority today is just waste to be dealt with in some form or another
The exhaust is brackish water, if they don't dump it while it's hot and oxygenate it properly there aren't any issues.
Israel has plenty of those plants and the places where they dump the water in the med have become oases of sea life.
Posted on Reply
#22
bug
Space LynxTSMC has already started building a silicon manufacturing plant in Arizona, it's going to be an entire ecosystem in Arizona for chips. Most people on this thread already know this, hence the confusing rhetoric.

That being said, TSMC recently paused construction, due to protests by local/native Arizonians, because TSMC is importing almost all of its workers and its not benefiting the local economy with job boon as previously promised.
That's what happens when you outsource all your manufacturing: your people forget how to build stuff. Not that building cutting-edge chips was a widespread trade to begin with...
Posted on Reply
#23
Rakhmaninov3
thesmokingmanThis. It's hilarious that they realized the local workforce sucks, wants way too much money, and again isn't skilled enough to pull it off.

The politicians who cried wolf, where's my SEMI?? These dopes never got down to brass tax on how this would work on a fundamental level given the US labor costs and issues.
Yep. I think Foxconn had the same realization in Wisconsin a few years back. Very expensive to employ Americans, and our educational system's dubious goal of sending every last student to a 4-year academic college rather than encouraging trade training has led to shortages of tradespeople and an oversupply of indebted non-workers with poor-ROI degrees.
Posted on Reply
#24
mechtech
Arizona................the prime choice for big semi-conductor plants.............and snowbirds (grey nomads - if you're down under)
Posted on Reply
#25
Vayra86
AleksandarKActually I would also like to see more about this. However modern silicon manufacturing usually recycles 99% of water they use IIRC (correct me if I am wrong). Just have to supply a big tank first.
The point is usually clean water. To whatever measure for the purpose it has; but our drinking water undergoes filtration too. Do you have a source saying its a closed loop/system? Never seen it myself.

We don't lack water on this planet; we just don't like the majority of it, or its in the wrong place.

Water is going to be a thing soon, and it already is. Already there are lots of places on the planet where there just isn't enough.
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