ASE Group, a global leader in advanced semiconductor packaging, has launched another major capacity expansion initiative. Recently, its subsidiary ASE Semiconductor’s board approved the demolition and reconstruction of the former Summei Technology factory to build the new K18B plant, with the project contracted to Fuhua Engineering—aimed at ramping up advanced packaging capacity.
During a briefing, ASE Group CFO Tung Hung-szu revealed that to support the operational growth of its Kaohsiung facilities, the group acquired 100% equity of Summei Technology in the first half of this year. After securing the factory land, it decided to start the reconstruction. The new K18B plant will have a structure of 2 basement floors and 8 above-ground floors, with a total floor area of approximately 18,341.93 ping. The pre-tax project cost reaches NT$4.008 billion, and Fuhua Engineering was selected after a multi-dimensional evaluation.
This is not ASE’s first recent expansion. In mid-August, it announced plans to purchase a factory and facilities in Luzhu District, Kaohsiung, from Win Semiconductors. Earlier, in October 2024, it broke ground on the new K28 plant (scheduled for completion in 2026 to expand CoWoS advanced packaging and testing capacity). In August 2024, it acquired the K18 factory in Nanzih, Kaohsiung, to deploy wafer bumping and flip-chip packaging production lines. At the end of 2023, it also leased a local factory from Foretech Electronics—reportedly to target advanced packaging demand for AI chips.
In its advanced packaging layout in Kaohsiung, ASE has invested US$200 million to build its first 600x600 large-size fan-out panel-level packaging (FOPLP) production line. This line is planned to have equipment installed and start trial operations in Q3 2025. Behind these expansion moves is ASE’s proactive response to market demand, following its acquisition of major advanced packaging orders for high-performance computing from clients like NVIDIA and AMD.
ICgoodFind: ASE’s intensive capacity expansion reflects strong demand for advanced packaging and will further solidify its leading position in the industry.
