ASE Technology to Expand IC Assembly and Testing Capacity Amid AI Boom
Taipei, Nov 25, 2025 – ASE Technology Holding Co, a leading provider of semiconductor assembly and testing services, has announced plans to expand its advanced integrated circuit (IC) assembly and testing capacity in response to the surging demand driven by the global artificial intelligence (AI) boom.
In a statement released yesterday, ASE Technology revealed that its wholly owned subsidiary, Advanced Semiconductor Engineering Inc (ASE), will acquire a newly built factory located in Jhongli District, Taoyuan, from its affiliate Hung Ching Development & Construction Co for approximately NT$4.23 billion (about US$134 million). This acquisition aims to significantly enhance ASE’s manufacturing capabilities in the region.
Additionally, ASE confirmed a collaborative development with Hung Ching to establish a new factory in Nanzih District, Kaohsiung. These expansion initiatives were approved during ASE Technology Holding Co’s board meeting held earlier on Monday.
The strategic expansion follows ASE’s groundbreaking last month on a new plant in Kaohsiung, referred to as K18B, which is designated for increasing production of advanced 3D chip-on-wafer-on-substrate (CoWoS) IC packaging services. This move underscores the company’s commitment to meeting the robust global demand for AI applications and other high-performance computing needs.
Industry sources note that ASE’s announcement of these two additional projects in Taoyuan and Kaohsiung reflects the company’s sustained confidence in the long-term growth prospects of AI and high-performance computing sectors. They further indicate that ASE anticipates maintaining a healthy backlog of orders for AI-related CoWoS IC assembly services well into 2027. A photo released by CNA showed ASE Technology’s plant in Kaohsiung as of November 1, illustrating the company’s ongoing investments in expanding capacity.
As AI technologies continue to drive chip innovation and demand, ASE Technology’s expansions are poised to strengthen Taiwan’s position in the semiconductor supply chain, particularly in high-end IC packaging and testing services crucial for next-generation AI hardware.
About ASE Technology Holding Co
ASE Technology Holding Co is one of the world’s largest providers of semiconductor assembly and testing services, specializing in advanced packaging technologies that enable enhanced chip performance. Headquartered in Taiwan, ASE plays a critical role in the semiconductor industry ecosystem, supporting a wide range of applications including AI, consumer electronics, automotive, and more.
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