ISE Labs, a subsidiary of ASE Technology Holding, has announced the acquisition of land in Tonalá, Jalisco, within the Guadalajara Metropolitan Area, to establish a new semiconductor packaging and testing facility. This investment underscores ASE's commitment to meeting rising demand for outsourced semiconductor assembly and test (OSAT) services across North America.

The new facility, located in the Axis 2 Industrial Park, is set to become a key part of ASE's North American expansion strategy. This project aims to recruit approximately 500 skilled engineers and technicians in its initial year, marking a significant employment boost for the local economy. Although ASE has not yet disclosed which specific packaging techniques will be offered, the company currently provides a broad array of advanced packaging technologies, which could be adapted for the new Mexican facility.

In collaboration with Jalisco's State Ministry of Economic Development, State Ministry of Innovation, Science and Technology, and State Ministry of Education, ISE Labs plans to establish partnerships with local educational institutions to ensure a steady supply of skilled workers. These collaborations are expected to bolster workforce development and support the region's growing semiconductor ecosystem, with Jalisco currently accounting for 70% of Mexico's semiconductor market.

The demand for semiconductor packaging and testing is on the rise, driven by major North American chipmakers like Intel, TSMC, and Samsung expanding their production capabilities. This development strengthens ASE's position in North America, where its services will be critical for testing and packaging the silicon produced by these growing operations.

Kenneth Hsiang, CEO of ISE Labs, emphasized the strategic importance of the expansion: “This proactive investment demonstrates ISE's commitment to innovation, growth, and our valued relationship with the state of Jalisco. It also provides business flexibility to expand as demand for semiconductor packaging and test continues to grow throughout North America.”

Enrique Alfaro Ramírez, Governor of Jalisco, highlighted the region's progress in technology: “This investment establishes Jalisco as the first state in Mexico and Latin America to offer OSAT services to major semiconductor companies across North America. ASE's choice reflects the state's success in transforming its semiconductor and electronics industries into models of technology and innovation.”

With this new development, ASE Technology strengthens its regional influence and positions itself to support North America's expanding semiconductor manufacturing needs.