ASE Expands Advanced Packaging Investment
According to ASE Technology Holding, the company is expanding its advanced semiconductor packaging investments with the inauguration of Phase 1 and the groundbreaking ceremony for Phase 2 of its Luzhu facility in the Kaohsiung Science Park on November 13. The project is expected to establish a major advanced packaging manufacturing hub in southern Taiwan. Once both phases reach full capacity, total investment is projected to exceed NT$100 billion (approximately US$3.2 billion), with estimated annual revenue of NT$80 billion (approximately US$2.6 billion) and around 5,000 job opportunities. The Luzhu facility is expected to become another major advanced packaging center alongside ASE's headquarters in Nanzih.
Growing demand for high-performance chips is driving the semiconductor industry's need for more advanced packaging technologies and production capacity. By bringing Phase 1 into operation while advancing Phase 2 construction, ASE is extending its advanced packaging footprint northward from Nanzih to Luzhu. The expansion will help connect wafer manufacturing, semiconductor packaging and testing, and related supply chain operations across southern Taiwan.
Hung Sung-ching, Executive Vice President of ASE Technology Holding, said advanced packaging has become a critical technology for improving computing performance across the semiconductor industry. ASE is proactively investing in production capacity, technology development, and talent recruitment. Its facilities in Nanzih and Luzhu will support one another, strengthening the company's advanced packaging capabilities and cooperation across the semiconductor supply chain.
Phase 1 of the Luzhu facility was developed through the integration of existing factory buildings. ASE previously invested NT$6.5 billion to acquire factory buildings and related facilities in the Kaohsiung Science Park, followed by facility integration and production line installation to introduce advanced packaging capabilities. The phase has now entered operational service, providing a foundation in manufacturing, workforce development, and supply chain resources for the subsequent expansion.
Phase 2 will incorporate vibration-control engineering into its factory design. Key utility systems, including specialty gas supply, hazardous materials management, and wastewater treatment, will be housed in separate buildings to minimize interference and improve risk isolation. These measures are intended to provide a more stable manufacturing environment while supporting future mass production and capacity expansion.
Meanwhile, ASE Semiconductor, an ASE subsidiary, has strengthened its collaboration with U.S.-based AI sensing technology company Ainos through a US$9 million procurement agreement, equivalent to approximately NT$290 million. Under the agreement, ASE will purchase 5,000 AI Nose electronic nose systems to enhance environmental monitoring, contamination management, and yield control in advanced packaging operations.
Ainos announced on November 12 that the agreement represents its largest single order to date. Including an initial procurement agreement worth US$2.1 million, the total value of the collaboration has reached US$11.1 million, or approximately NT$360 million, covering 6,400 AI Nose systems. The first batch of 1,400 units has already been delivered.
The AI Nose system converts chemical signals in the air into digital information known as Smell IDs, which are then identified and analyzed using AI models. The technology enables engineers to monitor changes in manufacturing environments, identify potential contamination sources, and detect trace chemical substances or abnormal environmental conditions at an early stage. By improving contamination detection and environmental control, the system can help reduce production losses and support higher manufacturing yields.
