ASE Technology Accelerates Global Capacity Expansion with 15 Projects

2026-06-25

ASE Technology Holding, the world's leading semiconductor packaging and testing company, held its annual shareholders' meeting on June 24, where Chief Operating Officer Tien Wu unveiled the group's comprehensive global expansion plan for the year. The group is simultaneously advancing 15 capacity build-out projects, encompassing both Greenfield (new construction) and Brownfield (acquisition of existing facilities) models. Specifically, ASE Semiconductor is building approximately 6 new plants, Siliconware Precision Industries is constructing about 7, and together with the acquisition of Innolux and other companies' existing facilities, the group has formed approximately 15 capacity expansion projects in total.

Taiwan Expansion

In Taiwan, ASE is simultaneously constructing 6 new plants, marking the largest expansion in the group's history. In April 2025 alone, ASE acquired Innolux's panel factory in Xinshi, Tainan, for approximately NT$900 million in additional consideration. The facility spans 55,000 square meters—12 times larger than Taipei Station's shopping mall—aimed at rapidly relocating equipment and expanding advanced packaging capacity.

Furthermore, ASE has invested $200 million to establish a Fan-Out Panel Level Packaging (FOPLP) mass production line in Kaohsiung. Equipment installation is scheduled for the second and third quarters of 2025, with trial production expected by year-end. If the 600×600mm yield rate meets targets, customer qualification samples can be delivered next year. This production line is regarded as the emerging mainstream alternative to TSMC's CoWoS for AI chip packaging. Another high-tech plant in Kaohsiung has already broken ground, with a total investment of NT$17.8 billion and an expected completion date in the second quarter of 2028, dedicated exclusively to AI chip packaging and testing demand.

U.S. and Southeast Asia Deployment

In the U.S. market, ASE's investment momentum continues unabated. In California, for example, ASE has already invested in two testing R&D and production facilities, and is currently planning a third and fourth. Additionally, the company is advancing relevant initiatives in Arizona in accordance with American customer requirements. Wu previously noted that the U.S. is not only driving the relocation of front-end advanced wafer fabrication capacity but also encouraging back-end OSAT (Outsourced Semiconductor Assembly and Test) expansion domestically. Beyond the U.S., ASE's fourth and fifth plants in Penang, Malaysia, have commenced operations with a total investment of $300 million, primarily serving automotive semiconductor and generative AI demand. Singapore's testing operations are also accelerating expansion to address AI-related testing requirements.

Global Capacity Rebalancing

Amid the restructuring of the global semiconductor landscape, ASE is actively adjusting its geographic capacity distribution. In addition to large-scale domestic expansion in Taiwan, ASE maintains clear footprints in Malaysia, Singapore, and the U.S., and is currently exploring automotive chip packaging and testing cooperation with European and Japanese semiconductor manufacturers—without ruling out capacity additions in Japan and Korea.

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