ASE Technology to expand assembly, testing capacity to meet AI demand

Taipei, Nov. 25 (CNA) ASE Technology Holding Co. is expanding its advanced IC assembly and testing capacity in Taoyuan and Kaohsiung to meet sustained strong demand generated by the artificial intelligence boom.

In a statement posted on the Taiwan Stock Exchange where ASE Technology shares are traded, the company said wholly owned subsidiary Advanced Semiconductor Engineering Inc. (ASE) will buy a newly built factory from affiliate Hung Ching Development & Construction Co. in Zhongli District in Taoyuan for about NT$4.23 billion (US$134 million).

In addition, ASE will work with property developer Hung Ching to develop a factory in Nanzih District in Kaohsiung, according to the company, said ASE Technology, the world's largest IC packaging and testing services provider.

The two plans secured approval at an ASE board meeting on Monday, the parent company said.

According to ASE Technology, Hung Ching has built years of experience in turning land into a foundation for tech firm factories, and the partnership aims to leverage Hung Ching's know-how and resources to forge a site for advanced IC assembly and testing services.

In early October, ASE Technology broke ground on a new plant in Kaohsiung -- coded K18B -- to expand production of advanced 3D chip on wafer on substrate (CoWoS) IC packaging services to meet strong global demand for AI applications.

ASE Technology's announcement of two additional expansion plans in Zhongli and Nanzih on Monday indicated its ongoing optimism over AI and high performance computing in the longer term, industrial sources said.

The sources said ASE Technology is expecting an order backlog for AI-related CoWoS IC assembly services into 2027.