[News] ASE’s SPIL Acquires NT$2.8B Plant Amid Spillover Demand from TSMC Advanced Packaging Capacity Crunch

As AI-driven demand continues to strain advanced packaging and testing capacity, SPIL, a subsidiary of ASE, is accelerating its expansion efforts. According to Investor.com, the company has acquired Taiwan Mask Corporation’s Zhunan Plant 6 for NT$2.8 billion. Because the facility is already operational, it is expected to contribute to SPIL’s operations relatively quickly.

The deal marks SPIL’s fifth factory acquisition this year. Including the latest purchase from Taiwan Mask Corporation, the company has spent more than NT$22.7 billion on factory acquisitions so far in 2026, according to Mirror Daily.

TSMC Demand Drives OSAT Capacity Expansion

The move comes as TSMC continues to expand outsourcing of its back-end advanced packaging and testing operations. Investor.com notes that SPIL remains unable to keep pace with demand despite accelerating capacity expansion. As the report points out, the newly acquired site is located near TSMC’s Zhunan packaging and testing facility and could serve as a new base for some of the testing equipment outsourced by TSMC.

As Investor.com indicates, amid tight advanced packaging and testing capacity, TSMC has asked partners such as ASE, SPIL, and King Yuan Electronics to absorb outsourced testing equipment and related manufacturing work. With order books already full, these OSAT providers are expanding capacity through new factory construction while securing additional space for testing equipment transferred from TSMC.

Advanced Packaging Demand Drives SPIL and ASE Growth

SPIL is a key packaging and testing partner for NVIDIA and serves major AI customers including AMD. The company also handles ASIC orders from several CSPs. According to Investor.com, SPIL is widely regarded as one of the industry’s leading advanced packaging providers and among the few companies capable of offering CoWoS packaging services. Its production lines are currently running at full capacity amid strong demand.

The momentum extends beyond SPIL to its parent company, ASE. According to Central News Agency, ASE reported May consolidated revenue of NT$63.03 billion, up 1.3% month over month and 28.6% year over year, marking a record high for the same period. Revenue for the first five months of 2026 totaled NT$298.94 billion, up 19.9% year over year and also a record for the period.

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(Photo credit: ASE)