TAIPEI (Taiwan News) — Advanced Semiconductor Engineering Inc. (ASE) CEO Wu Tien-yu (吳田玉) announced Tuesday that the company plans to establish Taiwan’s first large-scale 600x600 fan-out panel-level packaging (FOPLP) production line in Kaohsiung.

With an investment of US$200 million (NT$6.55 billion), ASE plans to install equipment in the second quarter and begin trial runs in the third quarter, per CNA. The company will assess yield rates and quality by year-end to determine commercial viability.

Fan-out panel-level packaging is a cost-effective integrated circuit technology that enables multiple chips to be processed simultaneously on a larger panel, improving efficiency and reducing production costs.

Wu said ASE expects capital expenditures this year to surpass last year’s levels, driven by strong demand for AI-related applications, per Liberty Times. Revenue from advanced semiconductor packaging and testing is projected to increase by US$1 billion annually, contributing to a 10% growth rate in ASE’s packaging and testing business. General semiconductor packaging and testing services are expected to grow at a mid-to-high single-digit rate, approximately 6% to 9%.

Industry analysts noted that several Taiwanese semiconductor firms, including TSMC and Innolux, are investing in panel-level fan-out packaging. Meanwhile, Amkor and Samsung Electro-Mechanics, a subsidiary of Samsung, have long been engaged in FOPLP technology.