AI demand remains strong, and semiconductor packaging and testing plants are accelerating their expansion.

2025/11/28

TechNews

November 28, 2025

by MoneyDJ

The AI trend has been going on for several years, and there are still no signs of demand cooling down. Not only is TSMC continuing to expand its CoWoS capacity, but domestic packaging and testing companies are also increasing their investment in building new plants to seize business opportunities. Currently, companies including ASE Technology Holding, Powertech Technology, King Yuan Electronics, and Siliconware Precision Industries all have plans to expand their new plants and are accelerating their efforts to get them operational as soon as possible to capitalize on growth opportunities after 2026.

Following the groundbreaking of its Kaohsiung K18B plant, ASE Technology Holding, a leading packaging and testing company, recently announced through its subsidiary ASE Semiconductor that it plans to acquire a 72.15% stake in the second phase of its Zhongli plant from related party Acer for NT$4.231 billion, and to jointly acquire the first phase of the third phase of the Kaohsiung Nanzih Technology Industrial Park through a shared construction arrangement. This is to address the strong demand for chip applications driven by AI and the urgent need for advanced packaging and testing capacity from customers. Another major semiconductor packaging and testing company, Powertech, purchased a factory in the Hsinchu Science Park from AU Optronics for NT$6.898 billion. The company stated that with the continued rise in global demand for AI computing power, advanced packaging technology has become a core competitive advantage in the semiconductor industry. This acquisition will effectively accelerate the mass production process of FOPLP advanced packaging, meeting the increasing demands of major international customers in AI, HPC, and automotive electronics.

King Yuan Electronics is pursuing a two-pronged approach: building and leasing factories. The company initially leased its Toufen factory and completed the lease for its new Yangmei factory in October. The new Yangmei factory covers 44,200 ping (approximately 3,667 square meters) and already has equipment installed, with a target production start date of early 2026. For its Tongluo fourth factory, the company plans to begin construction before the end of the year. Additionally, there are plans to build factories six and seven in the Zhunan Science Park, gradually improving its medium- to long-term production capacity layout.

Siliconware Precision's (SIP) third Fab at ZTE Corporation was originally planned for mass production in the second quarter of 2027. The company expects to complete construction ahead of schedule by the end of 2026 and begin mass production in the first quarter of 2027. The new Fab will integrate 3A (Advanced Testing Technology, Automation, and AI Smart Factory) technological capabilities, targeting applications in AI, ASIC, and automotive ICs. The company also does not rule out further capacity expansion in 2026 and 2027 to meet customer testing needs.

Image Source: shutterstock

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