Key facts
- ASE Technology Holding is expanding capacity to meet AI demand.
- The company plans to add 15 new sites this year, including greenfield sites and acquired facilities.
- Capital expenditure for the year is budgeted at $8.5 billion and may be exceeded.
- Investments are being made for the long term, looking beyond 2029.
- ASE has been investing in the U.S. with existing and planned testing factories.
- Siliconware Precision Industries, an ASE subsidiary, is a key packaging supplier for Nvidia's AI chips.
Taiwan's ASE Technology Holding, the world's largest provider of chip packaging and testing services, is significantly expanding its production capacity to address the escalating demand driven by artificial intelligence.
Tien Wu, the company's Chief Operating Officer, stated on Wednesday that ASE is set to add 15 new sites this year. These include six greenfield sites for ASE itself, seven for its subsidiary Siliconware Precision Industries (SPIL), and additional sites acquired from Taiwan's Innolux Corporation earlier in the year.
Wu confirmed that the company's capital expenditure for the current year is budgeted at $8.5 billion and could potentially exceed this figure. He emphasized that these expansion efforts are not short-term but are planned for 2029 and beyond, reflecting a long-term strategy to meet sustained AI demand.
ASE has also been investing in the United States, with two testing factories currently operational in California and plans for two more. Regarding a potential investment in Arizona, Wu indicated that the company is evaluating plans at a specific customer's request but requires careful consideration.
Notably, Siliconware Precision Industries (SPIL) is a major packaging supplier for Nvidia's AI chips. Nvidia had previously announced plans to invest up to $500 billion in AI server infrastructure in the U.S. with partners, including SPIL, though SPIL has not yet detailed its specific investment plans.