[News] ASE Reportedly to Break Ground on Six New Plants in 2026; CPO Mass Production Expected to Begin This Year

ASE Holdings, the world’s leading OSAT provider, held a groundbreaking ceremony for its new Renwu facility in Kaohsiung, presided over by CEO Tien Wu, where he also outlined the company’s expansion plans. According to TechNews, six new plants are expected to break ground worldwide this year, marking 2026 as the largest construction scale in the company’s history.

Anue adds that ASE plans to invest more than NT$108.3 billion in its Renwu site. Phase 1 is expected to begin operations in April 2027, with Phase 2 scheduled to come online in October of the same year.

As noted by TechNews, Wu emphasized that amid the AI wave, hardware manufacturing expansion has become a major bottleneck. In response, this year’s capital expenditure was originally set at US$7 billion, but Wu noted there is still room for an upward revision amid strong demand, with the exact increase to be detailed at the upcoming earnings call.

Meanwhile, regarding the widely discussed progress of co-packaged optics (CPO) and silicon photonics, TechNews reports that Wu described the shift toward optical communications as an undeniable trend. He also revealed for the first time that mass production of CPO is expected to begin this year. However, Wu acknowledged that the timeline for achieving meaningful economic benefits and broad global adoption at scale will ultimately depend on market dynamics.

As for industry rumors that ASE may acquire a plant from panel maker Innolux Corporation, Economic Daily News reports that Wu said any developments would be disclosed through material announcements in accordance with regulations. When asked about its U.S. expansion, he added that discussions with key customers are still ongoing, and any updates will be communicated to the public in due course.

Read more

• [News] ASE Buys NT$2.8B Zhunan Facility, Packaging Orders Reportedly Span NVIDIA, AMD, and More
• [News] Panel Maker Innolux Fab 5 Reportedly Eyed by ASE, OSAT Firms — Micron Out of Picture

(Photo credit: ASE)