Taiwan’s ASE Technology Holding, the world’s largest chip packaging and testing provider, has announced plans to expand its capacity to meet rising demand for artificial intelligence (AI) applications. Chief Operating Officer Tien Wu revealed that the company is adding 15 new sites this year, including six for ASE and seven for its unit Siliconware Precision Industries, with total capital expenditure expected to reach $8.5 billion or more. This expansion reflects a broader trend in the semiconductor industry, where sustained demand for AI is driving companies to scale operations and establish collaborative efforts with AI developers to build necessary infrastructure, particularly in the United States.
Nvidia: Nvidia develops advanced semiconductors and AI technologies. It has identified Siliconware Precision Industries as a partner in U.S.-based AI server infrastructure initiatives, highlighting the interconnected supply chain needs driving packaging expansions.
Tien Wu: Tien Wu serves as Chief Operating Officer of ASE Technology Holding. He detailed the company’s capacity expansion plans and U.S. investment considerations in direct response to sustained AI demand.
ASE Technology Holding: ASE Technology Holding is the world’s largest chip packaging and testing provider. It is expanding capacity by adding new sites this year to address strong AI demand, with investments planned through 2029 and beyond. The company is also building testing facilities in the U.S., including locations in California.
Siliconware Precision Industries: Siliconware Precision Industries is a key unit of ASE Technology Holding and serves as a major packaging supplier for Nvidia’s AI chips. It is included in the current expansion through multiple greenfield sites and is positioned as a partner in broader AI infrastructure efforts.
AI Demand Driver: Strong and sustained demand for AI applications is prompting semiconductor packaging and testing providers to scale operations across multiple years.
Supply Chain Focus: Leading AI chip developers are collaborating with packaging specialists to build supporting infrastructure in key markets including the United States.