Kaohsiung: Taiwan-based IC packaging and testing services provider ASE Technology Holding Co. has agreed to purchase a plant in Kaohsiung from radio frequency chip maker WIN Semiconductors Corp. to expand its advanced IC assembly capacity.
According to Focus Taiwan, ASE Technology will invest NT$6.5 billion (US$217 million) to acquire the plant and related facilities in Kaohsiung’s Lujhu District, situated within the Southern Taiwan Science Park. This move aims to meet the growing demand for high-end IC assembly services driven by the artificial intelligence boom.
WIN Semiconductors stated that the sale of the plant and equipment to ASE Technology is part of its strategy to optimize assets and boost operating capital, earning approximately NT$1.94 billion from the transaction.
ASE Technology has been aggressively investing in advanced IC assembly capacity in recent years. The company invested US$200 million to establish its first large-sized fan-out panel-level packaging (FOPLP) services production line in Kaohsiung. Additionally, in October 2024, ASE Technology initiated the construction of a new plant in Kaohsiung to expand its 3D chip on wafer on substrate (CoWoS) IC packaging services, with completion slated for 2026.
In a strategic move in August 2024, ASE Technology purchased a plant from affiliate Hung Ching Development and Construction Co. to develop wafer-level package and flip chip package technologies in Kaohsiung. Furthermore, in December 2023, it rented a plant from ASE Test Inc., another affiliate, to enhance its IC assembly capacity in Kaohsiung.
Analysts believe that acquiring WIN Semiconductors’ plant will help ASE Technology solidify its position as the world’s largest IC packaging and testing service firm.
ASE Technology reported NT$51.54 billion in consolidated sales in July, reflecting a 4.1 percent increase from the previous month but a slight 0.1 percent decrease from the previous year. In U.S. dollar terms, the company’s consolidated sales for the month reached US$1.769 billion, marking a 6.5 percent month-on-month increase and an 11.2 percent year-on-year growth.
ASE Technology noted the negative impact of a stronger Taiwan dollar against the U.S. dollar on its operations. Nevertheless, the company benefited from robust global demand for AI applications and high-performance computing (HPC) devices.
For the first seven months of 2025, ASE Technology’s consolidated sales increased by 7.95 percent year-on-year to NT$350.45 billion. At an investor conference held at the end of July, ASE Technology forecasted a sales growth of 12 percent to 14 percent for the third quarter in U.S. dollar terms and 9 percent to 11 percent in Taiwan dollar terms, based on a foreign exchange rate of NT$29.2 against the U.S. dollar.