Advanced Semiconductor Engineering Inc (ASE, 日月光半導體), the world’s biggest chip packager, held a groundbreaking ceremony yesterday for new facilities in Greater Kaohsiung, which are expected to create 3,500 jobs and generate US$530 million in revenue a year.
The facilities are part of the company’s expansion plan in the Nanzih Export Processing Zone’s second industrial park, which includes three factories dedicated to manufacturing, as well as research and development for advanced semiconductor packaging processes, ASE said.
The latest project includes a manufacturing plant and an R&D center, which are expected to be completed in the third quarter of next year, ASE said in a statement.
Construction of another manufacturing plant begun last year and it is scheduled to be completed by the end of the year.
ASE’s total investment in its new facilities is about US$800 million, the Ministry of Economic Affairs said.
“The investment in the new facilities is part of the company’s efforts to expand its capacity and provide clients advanced chip packaging services,” the ministry quoted ASE chairman Jason Chang (張虔生) as saying in a statement yesterday.
ASE said the new factories will use more advanced process capabilities in bumping, copper pillar and 3D IC packaging, and it hopes the new R&D center will lead to between 250 and 300 new patents a year.
The company has recruited 20,000 people in Greater Kaohsiung. Chang said ASE plans to increase the number of employees to 40,000 in the medium term and 60,000 in the long term, although he did not say if those numbers were for Taiwan alone or worldwide.
ASE has set a long-term goal of US$9 billion in annual sales, Chang was quoted as saying.
In the first three months of this year, ASE reported its consolidated sales dropped 14 percent quarter-on-quarter to NT$48.19 billion (US$1.6 billion). However, the figure was 11.81 percent higher than a year earlier.