Chip testing and packaging company Siliconware Precision Industries Co (SPIL, 矽品精密) plans to invest NT$97.5 billion (US$3.26 billion) to build a new plant in Yunlin County’s Huwei Township (虎尾), creating a new semiconductor hub in the agricultural county, the Central Taiwan Science Park (CTSP, 中部科學園區) said yesterday.
The plant would generate NT$35.4 billion in annual revenue once it is fully utilized, the science park said in a statement.
The facility, which is to cover 14.5 hectares, would create 2,800 jobs in the county, it said.
Photo courtesy of the Administration of Central Taiwan Science Park
“The latest project shows SPIL’s commitment to invest in Taiwan and demonstrates its determination to keep crucial manufacturing technology in the country,” SPIL chief administrative officer Chien Kun-yi (簡坤義) said after meeting with Yunlin County Commissioner Chang Li-shan (張麗善).
SPIL has been scouting potential locations for a plant in central Taiwan and finalized the location yesterday, Chien said.
Construction would start in the fourth quarter of this year, the company said, adding that first-phase operations are scheduled to begin in 2024.
The announcement came as SPIL’s parent company, ASE Technology Holding Co (日月光投控), proceeds with a capacity expansion to keep up with rising demand.
ASE on Friday broke ground on a NT$30 billion expansion of its facilities in Taoyuan’s Jhongli District (中壢).
The new facility is expected to start operations in the third quarter of 2024, it said.
It would contribute US$60 million in production value, ASE said in a separate statement, adding that it would create 2,000 jobs.
The new facilities would produce advanced IC packaging and testing technologies, such as wire bonding, flip-chip packaging and wafer-level packaging, ASE said.
ASE in April told investors that revenue growth this year would be supported by strong demand for high-performance computing, networking and automotive devices.
That would offset weakness in smartphone and consumer electronics segments, it said.
Chen Tien-ssu (陳天賜), president of ASE’s Jhongli plant, on Friday said that the existing facilities, which employ about 12,000 people, are operating at full capacity amid solid demand for high-performance computing, automotive electronics, 5G and Internet of Things devices.
Despite industry reports of scaled-backed orders and rising inventories, Chen said he expects the plant to continue operating at full capacity through the end of this year.
Additional reporting by CNA
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