ASE subsidiary SPIL broke ground on August 11 on a nearly TWD 100B plant in Douliu, Taiwan, adding advanced packaging capacity for AI chips.
The six-hectare site will house CoWoS packaging lines, with first-phase operations slated for 2028. Over the past two years the company has poured TWD 200B into capturing AI and high-performance computing demand, per TrendForce.
The Douliu project joins SPIL’s Huwei plant in Yunlin county, whose first phase turned profitable shortly after opening last September. Vice chairman Y.J. More land is still on the company’s wish list, Chang said, and it could keep investing in Yunlin if extra sites open up.
SPIL is also raising cash for the push. ASE announced a capital increase on its behalf that would issue 809.7 million new shares, raising about TWD 16.2B for foreign-currency purchases tied to AI chip packaging and testing capacity.
The expansion deepens ties with AI chipmakers. NVIDIA chief executive Jensen Huang attended the opening of SPIL’s Tanzi facility in January 2025, and AMD is working with ASE and SPIL on next-generation wafer-based 2.5D bridge interconnect packaging.
The move comes as TSMC scales its own CoWoS output. Its 5.5x-reticle CoWoS has entered high-volume production with yields above 98 percent on multiple AI customer products, and the company expects 14x reticle size by 2029. TSMC’s board approved a $29.4B capital budget on August 11, with 10 to 20 percent earmarked for advanced packaging, and sources say it is expanding CoW outsourcing to OSATs including ASE.
