ASE breaks ground on CoWoS plant in Kaohsiung

Taipei, Oct. 3 (CNA) Taiwan-based ASE Technology Holding Co., the world's largest IC packaging and testing services provider, on Friday broke ground on a new plant in Kaohsiung.

According to ASE Technology, the plant will expand production of advanced 3D chip on wafer on substrate (CoWoS) IC packaging services to meet strong global demand for artificial intelligence applications.

In a statement, ASE Technology said it will spend NT$17.6 billion (US$579 million) to build the facility -- K18B -- and construction is scheduled to be completed in the first quarter of 2028 to create almost 2,000 new jobs.

ASE Technology said Taiwan is an important semiconductor development hub in the world and has developed a comprehensive supply ecosystem to maintain the lead over its peers in sophisticated chip production technologies.

ASE Technology added that the K18B facility will have eight floors above ground and two floors underground, amid growing demand for AI development, high-performance computing (HPC) devices and automotive electronics.

The new plant will be equipped with Vibration Criteria (VC) -B level microvibration sensitive design, used in precision manufacturing like semiconductor production, while the plant will also own a central utility building (CUB) as a central nervous system for the facility and entire campus to manage electricity, cooling water and compressed air to stabilize production process and improve energy efficiency, ASE Technology said.

The K18B plant, construction of which is underway in the Nanzih Science Park, part of the Southern Taiwan Science Park, will be connected to the adjacent K18 plant through underground pipelines, forming a "life support system" to enhance operational resilience, ASE Technology added.

The new plant will become the first facility in the Nanzih Science Park to apply to smart fire evacuation guidance and an AI Internet of Things (AIoT)-based fire inspection system, while the factory will pursue Green Building Gold certification and fire safety standards by using low carbon building materials, intelligent energy-saving management, and recycled water recycling to create a low-carbon, green, smart green factory.

In recent years, ASE Technology has been gearing up to expand its CoWoS services.

ASE Technology broke ground in October 2024 on a new plant also in Kaohsiung to expand the particular services, with construction scheduled to be completed in 2026.

In August 2024, it bought a plant from affiliate Hung Ching Development & Construction Co. to develop wafer-level package and flip-chip package technologies in Kaohsiung.

In December 2023, it rented a plant from ASE Test Inc., another affiliate, in Kaohsiung to expand its IC assembly capacity.