Semiconductor packaging leader ASE has begun construction on its new K18B facility in Kaohsiung, Taiwan, targeting completion in Q1 2028. The plant will specialize in CoWoS advanced packaging and related technologies, addressing critical global capacity shortages for AI processors like NVIDIA H100 and Google TPU. With CoWoS demand projected to reach 1 million wafers annually by 2026, ASE aims to capture overflow orders from key partner TSMC while serving major clients including NVIDIA and AMD.
The NT$17.6 billion (US$570 million) investment will create over 2,000 jobs and strengthen Taiwan’s role in the global semiconductor supply chain. The facility will also provide integrated end-to-end testing services, streamlining production for high-performance computing applications.
ICgoodFind Summary: ASE’s strategic expansion directly tackles CoWoS supply constraints, reinforcing essential packaging capacity for the evolving AI chip market.
