[News] ASE Buys NT$2.8B Zhunan Facility, Packaging Orders Reportedly Span NVIDIA, AMD, and More

ASE has been actively expanding on the back of AI-driven demand for advanced packaging. According to Economic Daily News, ASE has made another expansion move, with its subsidiary SPIL on the 13th spending NT$2.801 billion to acquire a plant in Zhunan, Miaoli, previously owned by United Renewable Energy. The facility has a total building floor area of about 41,030.55 square meters, and the acquisition is expected to further ease tight advanced packaging capacity.

The Taiwanese packaging giant has been securing orders from multiple global technology leaders. As highlighted in the report, its 2.5D packaging technology (FoCOS) has been adopted across several key programs, including AMD’s Venice server CPU, NVIDIA’s Vera server CPU, Broadcom’s Tomahawk networking chips, and Amazon Web Services’ Trainium AI accelerator.

In parallel, ASE is actively absorbing order spillover from TSMC. With TSMC’s CoWoS capacity remaining tight, the report notes that ASE’s advanced packaging capacity is expected to double by 2026. Looking further ahead, institutional investors estimate that TSMC’s CoWoS capacity will reach 1.2–1.3 million wafers in 2026 and 1.8–2.0 million wafers in 2027, while ASE’s output is projected to exceed 200,000 wafers by 2027.

In addition, institutional investors cited by the report add that ASE’s expanded role—spanning complex CoWoS execution, system integration, and wafer testing services for NVIDIA—is expected to drive advanced packaging–related revenue of around US$4 billion this year.

SPIL Drives ASE’s Advanced Packaging Capacity Expansion

Its subsidiary SPIL has emerged as a key driver of ASE’s capacity expansion. In response to surging AI-driven demand for advanced packaging in recent years, SPIL has been actively securing sites and expanding capacity. Beyond its latest acquisition, SPIL is also expanding its base in Erlin, Changhua. According to Central News Agency, the company plans to construct five fab buildings at the Erlin site, with operations expected by 2027 and full utilization likely in 2028. Economic Daily News adds that SPIL is also building a dual-fab footprint in Yunlin, with its Huwei fab officially entering production in November 2025.

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(Photo credit: ASE)