Technology company ASE Technology Holding set to acquire production facility in Kaohsiung, Taiwan.
ASE Technology Expands Advanced IC Assembly Capacity in Kaohsiung, Taiwan
ASE Technology Holding Co, a leading semiconductor manufacturer, is bolstering its advanced IC assembly capacity in Kaohsiung, Taiwan, through significant investments and future development plans.
The company has agreed to acquire a plant and related facilities from Win Semiconductors in Kaohsiung's Lujhu District, located within the Southern Taiwan Science Park, for approximately NT$6.5 billion (US$217 million). This acquisition is aimed at meeting the increasing demand for high-end IC assembly, driven by the AI boom.
In addition to the acquisition, ASE Technology has invested US$200 million in establishing its first large-scale fan-out panel-level packaging (FOPLP) production line in Kaohsiung. Equipment installation is planned for mid-2025, with trial production expected by the end of the year.
Furthermore, ASE broke ground in October 2024 on a new plant in Kaohsiung to expand its 3D chip-on-wafer-on-substrate (CoWoS) IC packaging services. Construction is scheduled for completion in 2026.
These moves reflect ASE's aggressive strategy to expand advanced IC assembly and packaging capabilities amid strong market demand, particularly from AI and high-performance computing applications. The company's advanced packaging and testing segments are expected to show strong revenue growth through 2025 and beyond, maintaining ASE's market leadership.
At an investors' conference at the end of last month, ASE Technology forecasted that its sales for the third quarter would grow 12 to 14% from the second quarter in US dollar terms, and 9 to 11% in NT dollar terms. This forecast was made based on a foreign exchange rate of NT$29.2 against the US dollar. Despite the foreign exchange rate impact, ASE Technology benefited from solid global demand for high-performance computing devices and AI applications.
In the first seven months of this year, ASE Technology's consolidated sales rose 7.95% from the same period last year to NT$350.45 billion. The company posted NT$51.54 billion in consolidated sales for last month, representing a 4.1% increase from the previous month but a 0.1% decrease from the same month last year.
Win Semiconductor expects to earn about NT$1.94 billion from the sale of the plant and related facilities to ASE Technology. These investments and expansions underscore ASE Technology's commitment to staying at the forefront of the semiconductor industry and meeting the demands of the rapidly evolving tech market.
Read also:
- BMG's heat-resistant furnace shows increased durability with extended service life by three times
- Control valve seals should not be replaced with pressure seal bonnets due to compatibility issues and the need for specific sealing materials for optimal performance.
- Global Heavy Vehicle Manufacturer IVECO's Expansion Strategies Unveiled by Marco Torta, Identifying Three Key Pillars
