Taiwan’s ASE Technology to expands chip packaging in US, Mexico

ASE Technology Holding, a top global chip packaging and testing services provider based in Taiwan, plans to expand its operations in the United States and Mexico to better serve customers and meet increasing demand for chip packaging services.

New US plant and Mexican expansion

  • California: ASE has finalised plans for a second, larger chip testing facility in Fremont, California. The official announcement, including the investment amount, will be made on July 12th.
  • Mexico: Land has been purchased in Tonala, Mexico, for the construction of a new chip packaging and testing plant focused on automotive and power management chips.

CEO Tien Wu stated, “ASE’s new US investment demonstrates our commitment to expanding our global production footprint and ensuring service for our customers in North America.” The Fremont location offers a tax-free zone, simplifying chip testing for global customers.

While the CHIPS Act subsidies are not a focus, Wu acknowledged attractive investment incentives at the state and city level in the US. Additionally, ASE is evaluating the possibility of expanding its chip packaging and testing capacity in Japan, seeking a suitable location with a strong supporting ecosystem.

This expansion follows ASE’s recent efforts to diversify its production network after COVID-related disruptions impacted global chip supplies.

The company has sold four packaging plants in China and invested heavily in building a more geographically balanced network. This includes previously announced expansions in Malaysia and additional plants in Taiwan.

ASE plans to dedicate approximately $2.1 billion in capital expenditure for 2024.  The company serves a wide range of global chip manufacturers, including giants like Apple, Nvidia, Qualcomm, Intel, AMD, STMicroelectronics, and Infineon.


Attribution: Nikkei

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