ASE opens facility in Malaysia, aims to double capacity in AI, automotive

Penang, Malaysia, Feb. 18 (CNA) Advanced Semiconductor Engineering, Inc. (ASE), a wholly owned unit of Taiwan-based ASE Technology Holding Co., inaugurated its fifth plant in Penang, Malaysia, Tuesday, with an aim to double its IC packaging and testing capacity for artificial intelligence and automotive electronics used in the Southeast Asian market.

Addressing the inauguration ceremony, Tien Wu (吳田玉), CEO of ASE Holding, the world's largest IC packaging and testing service provider, said the new plant, located in the Bayan Lepas Free Industrial Zone of Penang, is expected to serve as a critical effort in ASE's global expansion.

Southeast Asia has become an important base of the global semiconductor industry at a time when demand for high-end chips is booming, whether in manufacturing or design, Wu said.

"With Malaysia solidifying its position as a regional semiconductor hub, we see our expanded facility playing an even greater role across the global semiconductor value chain and contributing to the country's economic growth," Wu added.

According to ASE, after the new facility opens, ASE's production area will expand from 92,903 square meters to 315,870 square meters, with its workforce expected to increase from about 3,300 to more than 6,000 over the next few years, doubling capacity for AI and automotive electronics use.

ASE's facilities in Penang will enlarge capacity to provide services for image sensors which will be used in industrial applications as well as Humanoid Robots plus automotive electronics, Wu said.

Echoing Wu, ASE Southeast Asia President Lee Kawi Mun (李貴文) said Penang has formed a semiconductor supply cluster with more than 350 foreign enterprises and over 4,000 small and medium-sized companies.

ASE's facilities in Malaysia will work with clients from China, Japan, Europe and the United States to develop next-generation image sensors and power management chips to target robotics applications, Wu said.

ASE will continue capacity expansion in Malaysia, Japan, South Korea and the Philippines, and does not rule out of the possibility that the base will seek business opportunities in India, he added.

Malaysia is the first overseas foothold for ASE. Since 1991, its facilities in Penang have provided IC packaging and testing services for chips used in consumer electronics, communications, industrial and auto industries.

Meanwhile, ASE has invested US$200 million to build a production line in Kaohsiung providing large sized fan-out panel-level packaging (FOPLP) services, Wu said.

The new production line is scheduled to have equipment installed in the second quarter and start a trial run in the third quarter, he added, noting that the company will assess the yield rates at the end of this year before deciding when commercial production will begin.

In addition to ASE, industrial sources said other semiconductor firms in Taiwan, such as Taiwan Semiconductor Manufacturing Co., Powertech Technology Inc. and Siliconware Precision Industries Co. have poured funds into FOPLP development.

Foreign rivals in FOPLP services include U.S.-based Amkor and Nepes and Samsung Electro-Mechanics of South Korea, the sources said.