TAIPEI (Taiwan News) — ASE on Tuesday broke ground on a third facility at its Nanzih technology park in Kaohsiung, adding new testing and logistics capacity as demand rises for AI and other high-performance chips.

The project carries a planned investment of NT$17.8 billion (US$540 million). It is expected to create about 1,470 jobs, and is slated for completion in 2028, per CNA.

Rather than adding a single structure, the company plans two eight-story buildings with one basement level. One will handle automated materials flow, warehousing, and factory distribution, while the other will focus on chip testing and system verification.

ASE is building the site around packaging and testing work tied to AI, high-performance computing, and high-speed communications. The company said the new complex is meant to shorten handoffs across the supply chain and improve support for more advanced chip products.

The logistics building will rely on automation and digital management tools to move materials through receiving, storage, and delivery to production lines. The testing facility, meanwhile, is aimed at customers who need more integrated services as chip packaging grows more complex.

Officials also cast the project as part of a broader expansion of southern Taiwan’s semiconductor base, per the report, with the buildout expected to strengthen Kaohsiung’s role in the industry chain. ASE estimates annual output will be roughly NT$4.63 billion per hectare at the finished park.