Technology company ASE Technology Holding plans to acquire a factory in Kaohsiung.
ASE Technology Expands Advanced IC Assembly Capacity
ASE Technology Holding Co, a leading Taiwan-based IC packaging and testing services provider, is significantly expanding its advanced IC assembly capacity through recent acquisitions, investments, and strong sales growth forecasts.
The most notable expansion comes from the NT$6.5 billion (approximately US$217 million) purchase of a plant and related facilities in Kaohsiung’s Lujhu District from WIN Semiconductors Corp. This acquisition is aimed at boosting ASE's capacity in advanced IC assembly, especially for high-end packaging driven by AI and high-performance computing demand.
In addition to this acquisition, ASE has invested US$200 million to build its first large 600 mm fan-out panel-level packaging (FOPLP) production line also located in Kaohsiung, scheduled for equipment installation in Q2-Q3 2025 and trial production by the end of 2025. Furthermore, ASE broke ground in October 2024 on a new facility for 3D chip-on-wafer-on-substrate (CoWoS) IC packaging services, expected to be completed in 2026.
ASE's advanced packaging and testing segments are experiencing robust performance. The company's 2025 revenue target for these areas is set to be US$1 billion higher than in 2024, and growth is expected to continue beyond 2026, reflecting strong industry demand linked to AI and HPC applications. ASE leads the global OSAT (Outsourced Semiconductor Assembly and Test) market, holding nearly a 45% share with revenues of US$18.54 billion in 2024.
The sale of the plant and equipment to ASE Technology by Win Semiconductors is aimed at optimizing assets and boosting operating capital, earning Win Semiconductors about NT$1.94 billion. ASE Technology has previously invested US$200 million to build its first large fan-out panel-level packaging services production line in Kaohsiung.
In the past few years, ASE Technology has invested aggressively in advanced IC assembly capacity. The plant and related facilities are located in Kaohsiung's Lujhu District inside the Southern Taiwan Science Park.
ASE Technology posted NT$51.54 billion in consolidated sales for last month, up 4.1% from a month earlier but down 0.1% from a year earlier. At an investors' conference at the end of last month, ASE Technology forecast that its sales for the third quarter would grow 12 to 14% from the second quarter in US dollar terms, and 9 to 11% in NT dollar terms.
These moves solidify ASE Technology’s commitment and capacity to meet surging demand driven by AI and high-performance computing trends.
- The acquisition of a plant and related facilities from WIN Semiconductors Corp by ASE Technology signifies a strategic move to bolster its advanced IC assembly capacity, specifically to cater to high-end packaging, driven by AI and high-performance computing demand in the technology industry.
- In line with its commitment to meet surging demand driven by AI and high-performance computing trends, ASE Technology is investing US$200 million to build a large 600 mm fan-out panel-level packaging (FOPLP) production line, which will also aid in boosting its finance capital.
