ASE Technology Holding Co (日月光投控) is expanding its advanced IC assembly and testing capacity in Taoyuan and Kaohsiung to meet sustained strong demand generated by the artificial intelligence (AI) boom.
The company said in a statement yesterday that its wholly owned subsidiary Advanced Semiconductor Engineering Inc (日月光半導體) would buy a newly built factory from affiliate Hung Ching Development & Construction Co (宏璟建設) in Taoyuan's Jhongli District (中壢) for about NT$4.23 billion (US $134 million).
In addition, the company will work with Hung Ching to develop a factory in Kaohsiung's Nanzih District (楠梓), ASE said.
Photo: CNA
The two plans secured approval at the holding company's board meeting held earlier on Monday, it said.
Earlier last month, ASE Technology broke ground on a new plant in Kaohsiung — coded K18B — to expand production of advanced 3D chip-on-wafer-on-substrate (CoWoS) IC packaging services to meet strong global demand for AI applications.
The company's announcement of two additional expansion plans in Jhongli and Nanzih on Monday indicated its ongoing optimism over AI and high-performance computing in the longer term, industrial sources said.
The sources said ASE Technology is expecting an order backlog for AI-related CoWoS IC assembly services into 2027.
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