On November 11, ASE Technology Holding Co., Ltd., a leading semiconductor packaging and testing company, held a groundbreaking ceremony for its third Nanzi Technology Park, with a total investment of NT$17.8 billion. The park is planned to focus on two core areas: "intelligent logistics" and "advanced packaging and testing," thereby expanding its high-end packaging and testing capacity and seizing the demand growth driven by AI, high-speed computing, and high-speed communication applications.
The company stated that the park is expected to break ground in 2026 and be completed in the second quarter of 2028. Upon completion, it is projected to create approximately 1,470 jobs, with an estimated annual output value of NT$4.63 billion per hectare.
The groundbreaking ceremony was attended by representatives from ASE Technology Holding Co., Ltd., including Senior Vice President Hung Sung-ching, Deputy Director-General of the Industrial Park Administration Bureau of the Ministry of Economic Affairs Liu Chi-chuan, and Deputy Director-General of the Kaohsiung City Government Economic Development Bureau Chen Yi-liang. Hung Sung-ching stated that the third park will strengthen high-end packaging and testing service capabilities to meet the demand for high-performance chips in the AI era. Liu Chi-chuan pointed out that this project is an important strategic move to address the expansion needs of the semiconductor industry, which will not only boost employment and output but also help strengthen the cluster effect of the southern semiconductor S-corridor. Chen Yi-liang stated that the Kaohsiung City Government will continue to provide project assistance through the "Invest in Kaohsiung" office, working with the central government to accelerate corporate investment, and is optimistic that the third park will further strengthen Kaohsiung's semiconductor industry chain from design and manufacturing to packaging and testing.
Intelligentization and digitalization
ASE Technology Holding Co., Ltd. stated that its third campus will incorporate intelligent, digital, and sustainable building concepts, integrating logistics, process, and testing capabilities to enhance supply chain efficiency and advanced packaging and testing service capabilities. The campus will consist of two buildings: an intelligent logistics center and an advanced process testing building. Each building will have eight floors above ground and one floor below ground. The overall design prioritizes ecology, energy conservation, health, and waste reduction. Construction will also prioritize waste reduction, creating a smart factory that is both environmentally friendly and highly efficient.
The intelligent logistics center will house an automated warehouse integrating the entire material receiving and dispatching process, encompassing material receiving and dispatching, warehousing management, and production distribution. Through intelligent logistics equipment and a digital management platform, it will monitor material flow, inventory status, and delivery milestones in real time, improving operational efficiency and supply chain resilience, and supporting the high-precision, high-efficiency, and traceable material management requirements of advanced processes. The advanced process testing building will target the high-end packaging and modularization needs driven by AI and HPC, planning to create an integrated testing and system verification platform, providing one-stop service to accelerate product introduction and improve quality control efficiency.
Furthermore, the third campus will also support testing for various types of packaged and module products, including studded products, BGA products, high-frequency modules, and power management modules. ASE pointed out that as AI chips and high-speed interconnect applications increase product complexity, testing technologies are also developing towards high frequency, high power, and high parallelism to support more complex advanced packaging forms and module integration. The company emphasized that the third campus is not only an expansion plan but also a crucial strategic move for the AI era. It will leverage intelligent operations and advanced packaging and testing as dual engines to enhance high-end manufacturing and testing integration capabilities, while simultaneously fulfilling ESG and sustainable building commitments.
ASE Technology Holding Co., Ltd. is reportedly in talks to acquire Innolux's Tainan Plant 2 and Plant 5
Innolux recently held a board meeting and announced its intention to dispose of the real estate related to its Tainan FAB 2 (Plant 2) and FAB 5 (Plant 5), authorizing the chairman to handle related matters. New industry rumors suggest that ASE Technology Holding Co., Ltd. is the buyer for both plants, indicating a strong demand for advanced packaging and testing capacity for AI chips. The company's need for new plant construction is insufficient, necessitating a large-scale purchase of existing facilities to expand its infrastructure.
ASE did not respond to industry rumors, maintaining its previous statement of interest in purchasing the plants, stating that all information should be based on official announcements. New industry rumors suggest that ASE was previously in talks to purchase Innolux's Plant 5, and recently its subsidiary SPIL has added two more plants to its purchase list. The two parties are likely in the negotiation stage, and a public announcement will only be made after the chairman's approval.
Innolux is expected to sell three plants in the first half of this year, recognizing substantial gains from the disposal. Packaging and testing company ChipMOS (8150) purchased a factory building and facilities located at No. 6, Section 2, Huandong Road, Southern Taiwan Science Park from Innolux. The building area is 34,300 square meters (approximately 10,000 pings), and the total transaction amount is NT$880 million. The factory will be used for capacity expansion. Innolux expects to recognize a disposal gain of approximately NT$659 million from the sale of the factory. It is understood that this is a module factory of Innolux, which was originally leased to its group subsidiary, Chengda (3149), until the lease was terminated at the end of last year.
Source: Semiconductor Industry Observer (compiled)
