Taiwan Semiconductor Manufacturing Company (TSMC) and Amkor Technology agreed to bring advanced packaging and test capabilities to a planned facility in the US state of Arizona, the first time it will provide the services in the country.

In a joint statement, the pair explained TSMC will contract turnkey packaging and test services from an Amkor Technology site in Peoria to support the Taiwan-headquartered company’s customers, particularly clients using its advanced wafer fabrication facilities in Phoenix.

Amkor Technology is a long-term TSMC partner, providing semiconductor assembly and test services.

The companies will jointly define the specific packaging technologies, which will be delivered to address common customers’ needs.

Kevin Zhang, TSMC’s SVP of business development and global sales, said its customers are increasingly dependent “on advanced packaging technologies for their breakthroughs in advanced mobile applications, AI and high-performance computing”.

He said the arrangement would provide Amkor Technology with “a more diverse manufacturing footprint”.

In July, Amkor Technology was granted funding of $600 million under the US CHIPS and Science Act to contribute towards a $2 billion advanced chip packaging plant being built in Arizona.

TSMC is receiving $11.6 billion in grants and loans to build a third chip production facility in Arizona.