ASE (Advanced Semiconductor Engineering) is set to significantly boost its advanced packaging operations by acquiring a production plant and associated facilities from WIN Semiconductors. The facility, located in the Southern Taiwan Science Park in Kaohsiung, comes with a price tag of NT$6.5 billion and received board approval on August 11.
This move reflects ASE’s aggressive response to escalating demand for sophisticated packaging driven by AI workloads and high-performance computing applications. Investors view this acquisition as a sign of ASE’s confidence in the long-term growth of high-end assembly and testing services.
In 2024, the global top 10 OSAT (Outsourced Semiconductor Assembly and Test) firms generated US$41.56 billion in revenue. ASE led the pack with US$18.54 billion, capturing nearly 45 percent of the market.
The acquisition complements ASE’s already strong performance in advanced packaging and testing. The company’s revenue target in this segment for 2025 surpasses 2024’s by approximately US$1 billion, with momentum expected to extend into 2026 and beyond.
ASE is also expanding its production capabilities with a US$200 million investment in its first 600 mm Fan-Out Panel Level Packaging (FOPLP) line. Installation of equipment is underway in the second and third quarters of 2025, and trial production is expected by year-end.
One cautionary note: despite solid demand, the company anticipates gross margins may slip by 1 to 1.2 percentage points in the third quarter due to exchange rate pressures.
