TAIPEI (Taiwan News) — Advanced Semiconductor Engineering said Friday it plans to invest NT$108.3 billion (US$3.4 billion) in a new Kaohsiung facility to expand production capacity.

CNA reported the company held a groundbreaking ceremony for the new site in Renwu District earlier in the day. The first phase is expected to begin operations in April 2027, with a second phase set to open later that year.

ASE CEO Wu Tien-yu (吳田玉) said the project aims to support growing global demand driven by AI. He said the new plant will help improve overall efficiency and strengthen the company’s role in the supply chain.

Kaohsiung Mayor Chen Chi-mai (陳其邁) said the project will boost the city’s industrial growth and attract more companies to the area. He added that it will also support Taiwan’s broader development in the chip sector, per CTEE.

The company said the investment is expected to create strong economic value and generate thousands of jobs. It also plans to work with local schools to train workers and build a stable talent pool, per Economic Daily News.

ASE said the new site will use smart systems and automated equipment to improve production and reduce environmental impact. It added that the project will help transform Kaohsiung into a key center for advanced technology industries, Liberty Times reported.