ASE Breaks Ground on New High-Tech Facility in Kaohsiung, Investing NT$ 17.8 Billion to Meet AI Chip Demand

KAOHSIUNG, Taiwan, March 11, 2026 - Advanced Semiconductor Engineering, Inc. (ASE, a member of ASE Technology Holdings Inc, NYSE: ASX, TWSE: 3711) officially broke ground today to mark the construction of two new buildings at the Kaohsiung Nanzih Technology Industrial Park (Zone III). With a total investment of NT$ 17.8 billion, construction is set to begin in 2026 and expected to be completed by the second quarter of 2028. Upon completion, the new facility will create approximately 1,470 jobs and deliver an estimated annual output value of NT$ 4.63 billion per hectare.

As AI, high-performance computing, and high-speed communication applications continue to expand, the semiconductor industry is seeing growing demand for advanced packaging and testing services. In response, the new facility is being constructed based on intelligent, digital, and sustainable concepts, integrating our logistics, manufacturing, and testing capabilities to enhance supply chain efficiency and advanced packaging and testing capacity.

The new facility's architectural design is guided by the core principles of ecology, energy efficiency, health, and waste reduction. It aims to minimize construction waste while creating a modern smart factory that is both environmentally-friendly and highly efficient.

One building of the new facility will serve as a Smart Logistics Center, featuring a highly efficient automated warehouse that integrates the entire material receiving and dispatch process, including material handling, inventory management, and delivery. Our smart logistics equipment and digital management platform will enable real-time tracking of material flow, inventory status, and dispatch points, thereby enhancing operational efficiency and strengthening supply chain resilience to meet the advanced process demands for high precision, efficiency, and traceability in material management.

The second building is dedicated to high-end packaging and testing, designed to meet the needs driven by AI and high-performance computing (HPC). It will house an integrated testing and system validation platform that offers one-stop services to accelerate product introduction and enhance quality control efficiency.

Additionally, the new facility will accommodate testing requirements for various packaging and module products, including lead frame packaging and ball grid array (BGA) products, as well as system testing for high-frequency modules and power management modules. As the complexity of packaging for AI chips and high-speed interconnect applications increases, the associated testing capabilities will evolve to focus on high frequency, high power, and high parallelism, supporting more complicated integration applications for advanced packaging and module products.

Beyond capacity expansion, this new facility represents a strategic investment for the AI era. By prioritizing sustainable building practices and waste reduction, the project reinforces the company's ESG commitments while creating an advanced base that harmonizes industrial growth with environmental responsibility.

‍

‍