Kaohsiung: Taiwan-based ASE Technology Holding Co., the world’s largest IC packaging and testing services provider, broke ground on a new plant in Kaohsiung.
According to Focus Taiwan, the plant will expand production of advanced 3D chip on wafer on substrate (CoWoS) IC packaging services to meet strong global demand for artificial intelligence applications.
In a statement, ASE Technology said it will spend NT$17.6 billion (US$579 million) to build the facility, named K18B, with construction scheduled to be completed in the first quarter of 2028, creating almost 2,000 new jobs. ASE Technology emphasized Taiwan’s role as an important semiconductor development hub, noting its comprehensive supply ecosystem that helps maintain a lead in sophisticated chip production technologies.
The K18B facility will feature eight floors above ground and two floors underground, aiming to cater to the growing demand for AI development, high-performance computing (HPC) devices, and automotive electronics. The facility will incorporate Vibration Criteria (VC) -B level microvibration sensitive design, essential for precision manufacturing like semiconductor production. It will also house a central utility building (CUB) to manage electricity, cooling water, and compressed air, thereby stabilizing the production process and improving energy efficiency.
Construction of the K18B plant is underway in the Nanzih Science Park, part of the Southern Taiwan Science Park, and it will be connected to the adjacent K18 plant through underground pipelines. This connection forms a “life support system” to enhance operational resilience. The facility aims to be the first in the Nanzih Science Park to implement smart fire evacuation guidance and an AI Internet of Things (AIoT)-based fire inspection system. The plant will seek Green Building Gold certification and adhere to fire safety standards, using low carbon building materials, intelligent energy-saving management, and recycled water recycling to establish a low-carbon, smart green factory.
In recent years, ASE Technology has actively expanded its CoWoS services. In October 2024, it broke ground on another new plant in Kaohsiung to expand these services, with completion scheduled for 2026. Additionally, in August 2024, ASE Technology acquired a plant from affiliate Hung Ching Development and Construction Co. to develop wafer-level package and flip-chip package technologies. In December 2023, it rented a plant from ASE Test Inc., another affiliate, to expand its IC assembly capacity in Kaohsiung.
