ASE Technology Holding, the worlds largest provider of chip packaging and testing services, is expanding its manufacturing footprint to meet what management describes as robust AI demand stretching beyond the near term. Chief Operating Officer Tien Wu said the company is adding 15 new sites this year and is moving ahead with a multiyear capacity plan aimed at 2029 and beyond.
Wu outlined where the new sites are coming from and how they fit into ASEs broader capital allocation. Among the 15 additions, the company is establishing six greenfield sites under the ASE banner and seven greenfield sites under its unit Siliconware Precision Industries. The buildout also incorporates sites acquired earlier this year from Innolux Corporation.
On spending, Wu reiterated that ASE has budgeted $8.5 billion for capital expenditure this year and cautioned that total capex could exceed that figure as expansion plans evolve.
U.S. investment and testing capacity
The company said it has been investing in the United States, with two testing factories currently operating in California and two additional testing plants planned. Wu noted ASE is evaluating investment options in Arizona requested by a specific customer, but said the company needs to weigh those proposals carefully before committing capital.
Wu emphasized that the factory expansion timeline is not limited to the immediate two years but extends into 2029 and beyond to address expected strong AI-related demand for packaging and testing services.
Customer ties and partner comments
The companys unit Siliconware Precision Industries (SPIL) is identified as a major packaging supplier for Nvidias AI chips. Nvidia said last year it planned to build up to $500 billion worth of AI server infrastructure in the United States with partners that included SPIL, but the subsidiary itself has not announced any investment plans tied to that initiative.
Implications for supply chain and production planning
ASEs announcements highlight a capacity push that spans greenfield construction, acquisitions and targeted U.S. testing facilities. Managements statements indicate the company intends to match capital deployment to evolving customer needs while maintaining caution on discrete site commitments such as those in Arizona.