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ASE Technology Holding Co., Ltd. (ASE) (NYSE: ASX, TAIEX: 3711), the world's largest chip packaging service provider, announced on Auguet 9 plans to invest NT$5.26 billion (US$162.15 million) in acquiring a manufacturing facility from an affiliate, as part of its ongoing efforts to expand its advanced packaging capacity.

ASE plans to purchase the K18 fab in Kaohsiung’s Nanzih District from Hung Ching Development and Construction Co, ASE Chief Financial Officer Joseph Tung (董宏思) said during an online media briefing. Advanced Semiconductor Engineering Inc, a major ASE subsidiary, co-developed the fab with Hung Ching, holding a 25 percent stake in the facility. Advanced Semiconductor signed a cooperative development contract with Hung Ching in June 2020 to build the K13 plant, which was later renamed K18.

ASE plans to acquire the K18 fab in Kaohsiung’s Nanzih District from Hung Ching Development and Construction Co, ASE Chief Financial Officer Joseph Tung (董宏思) announced during an online briefing. Advanced Semiconductor Engineering Inc, a key ASE subsidiary, co-developed the fab with Hung Ching and holds a 25 percent stake. The plant, originally named K13, was built under a cooperative agreement signed in June 2020 and later renamed K18.

ASE plans to enhance the K18 fab's capabilities by adding bumping and flip-chip packaging capacity, Tung said.

In June, ASE also announced a joint venture with Hung Ching to construct a new plant, K28, in Kaohsiung.

These expansions aim to meet the rising demand for advanced packaging services, particularly for artificial intelligence (AI) and high-performance computing (HPC) chips. The K18 fab is expected to commence operations in the fourth quarter of 2026.

Additionally, ASE is expanding its advanced testing and packaging capacity internationally.

Last week, the company announced plans to acquire 16 hectares of land in Kyushu, Japan, for about NT$701 million, where it intends to build a new advanced testing and packaging plant.

Last month, ASE opened its second testing facility in San Jose, California, to expand its advanced chip testing services, including burn-in testing, to meet the growing engineering demands of customers in emerging semiconductor applications like AI and HPC. ISE Labs, a fully owned ASE subsidiary, has invested approximately US$500 million in its U.S. labs and has hired over 200 Taiwanese employees.

Separately, ASE reported a 6.7 percent year-on-year revenue increase for last month, rising from NT$48.35 billion to NT$51.6 billion, the highest level since December last year. On a monthly basis, revenue grew by 10 percent from NT$46.93 billion, according to a filing with the Taiwan Stock Exchange. For the first seven months of this year, ASE's cumulative revenue reached NT$324.64 billion, up 2.89 percent from NT$315.52 billion during the same period last year.

Editor：Lulu

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