TAIPEI (Taiwan News) — ASE will spend NT$14.85 billion (US$460 million) to acquire Innolux Corp.’s fab and related facilities at Southern Taiwan Science Park as part of efforts to expand its advanced semiconductor packaging capacity.
The fab spans 56,000 ping (about 185,000 square meters). The facility will be used to meet packaging demand for generative AI and high-performance computing chips, per CNA.
The company said it plans to invest NT$224 billion this year to build new plants and develop leading embedded and advanced packaging technologies. These solutions combine processors, memory, and other chips into a single package for AI devices, helping to reduce heat issues and improve signal performance.
To speed up the removal, ASE said it will spend NT$982 million to support Innolux in relocating and transporting existing equipment at the fab.
Innolux noted it will also sell two factories this year, with total proceeds expected to exceed NT$20 billion. The company’s module plant at the Southern Taiwan Science Park will be sold to ChipMOS Technologies for NT$880 million. Another plant in the park will be sold to ASE’s Siliconware Precision for NT$6.33 billion.
Earlier this month, ASE broke ground on a new semiconductor packaging plant in Kaohsiung’s Renwu District, which is expected to begin operations in April 2027. CEO Tien Wu (吳田玉) said the company has been operating in Kaohsiung for more than 40 years, adding the city has become its semiconductor packaging hub in southern Taiwan.
Wu urged domestic semiconductor manufacturers and hardware suppliers to seize opportunities from the rising AI demand. He said ASE has more than 64,000 employees in Taiwan, including over 28,000 in Kaohsiung. The company plans to hire 3,000 technical staff this year to support its expanding capacity.
The Southern Taiwan Science Park has served as a key hub for Taiwan’s semiconductor manufacturing development. In March, TSMC said it will begin construction of a new plant in the park this year, with completion scheduled for 2028.
TSMC’s existing fabs in the science park mainly focus on 3 nm and 5 nm chip processes. The new plant will target 2 nm or 1.6 nm chips, aiming to increase chip density and reduce power consumption for use in AI and high-performance computing applications.
