ase boosts advanced packaging with nt$6.5 billion kaohsiung facility buy
Kaohsiung, Friday, 15 August 2025.
ase group, a top osat provider, is investing heavily in advanced packaging. the company is acquiring a win semiconductors facility for nt$6.5 billion. this strategic move addresses surging demand for ai and high-performance computing solutions. the kaohsiung facility will significantly expand ase’s capacity. ase’s 2024 revenue hit us$18.54 billion, nearly 45% of the osat market. the company is also investing us$200 million in fan-out panel level packaging, with trial production slated for year-end.
boosting advanced packaging capacity
ASE Group’s acquisition of the Win Semiconductors facility for NT$6.5 billion highlights a significant investment in advanced packaging [1]. This move aims to meet the increasing demand driven by artificial intelligence and high-performance computing [1]. The new Kaohsiung facility will complement ASE’s existing investments, including the US$200 million allocated for its initial 600 mm fan-out panel level packaging production line [1]. Equipment installation is scheduled for the second and third quarters of 2025, with trial production expected by the end of the year [1].
financial outlook and market position
In 2024, ASE Group demonstrated market leadership with US$18.54 billion in revenue, capturing nearly 45% of the global outsourced semiconductor assembly and test market, which totaled US$41.56 billion [1]. The company has raised its revenue target for advanced packaging and testing in 2025 by approximately US$1 billion compared to 2024 [1]. This growth trajectory is expected to continue beyond 2026 [1]. Despite this strong momentum, exchange rate fluctuations are projected to slightly reduce gross margins by 1 to 1.2 percentage points in the third quarter compared to the second quarter of 2025 [1].
ase’s strategic expansion in kaohsiung
The acquisition of Win Semiconductors’ facility enhances ASE’s presence in Kaohsiung and supports the company’s broader expansion strategy [1]. ASE is actively building advanced packaging capacity to address growing demand, particularly for 2.5D, 3D, and wafer-level packaging [2]. These expansions aim to alleviate current capacity constraints and fulfill urgent and long-term orders from global clients [2]. ASE anticipates that its advanced packaging and testing business will increase revenue by US$1 billion in 2025 compared to 2024, with continued growth expected beyond 2026 [2].
market competition and industry dynamics
Other companies are also expanding advanced packaging capabilities. 日月光半导体 (ase semiconductor) is investing NT$6.5 billion to acquire a facility in Kaohsiung for advanced packaging [2]. 和大芯 (Heda core), invested in by the 和大 Group and 高鋒, is preparing to showcase its CoWoS advanced packaging testing equipment at the Taipei International Semiconductor Exhibition [4][5]. 和大芯’s equipment features automated material handling systems, which are expected to drive a wave of equipment upgrades [4]. These dynamics highlight the increasing competition and investment in advanced packaging technologies.
concerns over tsmc’s data leak
Adding a layer of complexity to the semiconductor landscape, a leak of TSMC’s 2nm process secrets has raised concerns about national security and supply chain vulnerabilities [3]. The leak reportedly involved extreme ultraviolet lithography equipment information related to Tokyo Electron [3]. Investigations are underway, and authorities are evaluating the potential impact on TSMC’s competitive advantage and its partners [3]. This incident underscores the critical importance of protecting intellectual property and maintaining secure supply chain relationships in the semiconductor industry [3].