ASE Technology Holding Co.(NYSE: ASX, TAIEX: 3711), the world's largest provider of IC packaging and testing services, held a groundbreaking ceremony for its new advanced production facility, the K28 plant, in Kaohsiung yesterday (Oct. 9). The K28 plant, scheduled for completion in 2026, will expand ASE's capacity for CoWoS (Chip-on-Wafer-on-Substrate) advanced packaging, driven by growing demand for high-end packaging and final testing services.

The new facility marks the second phase of ASE's plan to build two factories on a two-hectare plot in Kaohsiung’s Dashe District. The first phase, the K27 plant, was completed and began operations in 2023. The K28 plant, developed in collaboration with affiliate Hung Ching Development and Construction Co., will feature seven floors above ground and one underground, constructed using low-carbon materials and outfitted with energy-efficient equipment, including solar panels.

ASE is also making strides in smart manufacturing, with the K28 plant designed to include anti-microvibration technology, a first for the company. Over 400 engineers have been assigned to focus on automation, developing advanced software, equipment, and procedures like automated coding to reduce reliance on manual labor.

In addition to the K27 and K28 facilities, ASE has been steadily expanding its operations in Kaohsiung. In August, the company acquired the K18 facility in Nanzih District from Hung Ching for NT$5.26 billion (US$163.41 million) to enhance its packaging capabilities, including sophisticated IC pumping and flip chip packaging. Furthermore, in late December 2023, ASE announced it had leased additional buildings from ASE Test Inc. in Nanzih, aiming to boost its packaging capacity, particularly for AI chips.

These developments highlight ASE's commitment to expanding its advanced packaging capabilities and meeting the increasing global demand for high-performance semiconductor technologies.