Alex Dudov
⬤ ASE Technology is ramping up semiconductor packaging operations as AI chip demand continues its rapid climb. The company announced two new projects in Taiwan focused on expanding advanced packaging capacity, part of a broader investment push to support next-generation computing products. These developments underscore the growing importance of packaging in the semiconductor supply chain, particularly as AI performance requirements become more demanding.
⬤ ASE Technology will invest NT$4.32 billion to purchase land in Chungli's industrial park in northern Taiwan, where it plans to expand packaging operations. The company is also starting a joint development project in Kaohsiung's Nanzih district, a hub for advanced manufacturing and backend chip processes. These moves respond to customer demand for sophisticated packaging technologies—high-density substrates and system-in-package solutions—needed to meet thermal, interconnect, and bandwidth requirements in AI hardware.
⬤ The announcements follow last month's groundbreaking of ASE Technology's K18B plant, part of its long-term capacity strategy. As AI chipmakers seek advanced packaging for accelerator-class devices, suppliers like ASE Technology have become essential infrastructure partners. Related stocks, including ASX and AMKR, are drawing increased investor attention as the semiconductor ecosystem races to scale capacity alongside AI growth.
⬤ Advanced packaging has emerged as a critical bottleneck and opportunity as AI hardware scales rapidly. By expanding across northern and southern Taiwan, ASE Technology is positioning itself to serve customers building AI servers, data center systems, and specialized compute products. The investments reinforce Taiwan's position as a global center for next-generation semiconductor manufacturing and packaging innovation.
Alex Dudov
