ASE Technology Holdings is poised to exceed performance targets for advanced packaging, driven by surging AI demand, according to Chief Operating Officer Wu Tianyu. Speaking at a shareholder meeting on June 26, Wu highlighted the robust outlook for advanced packaging technologies like CoWoS, projecting performance to surpass the 2.5 target.
ISE Labs, Inc., ASE’s subsidiary, is set to enhance its testing production capacity, with a ribbon-cutting ceremony planned in California on July 12. This expansion focuses on high-end chip testing, crucial for the burgeoning AI market. Wu also hinted at possible future expansions of advanced packaging capabilities in Japan, the United States, and Mexico, reflecting the company’s strategy to meet regional demands and navigate supply chain restructuring.
The AI sector is becoming a significant growth driver for the semiconductor industry, with Wu optimistic about sustained demand through 2025. Industry analysts predict the advanced packaging market to grow at a compound annual growth rate (CAGR) of over 10% from 2023 to 2028, significantly outpacing traditional packaging and the broader semiconductor industry.
To address the high demand, ASE will bolster its overseas production capacity, ensuring readiness to cater to global markets. The company’s close collaboration with TSMC on CoWoS technology underscores its strategic alignment with leading industry players to capture AI-driven opportunities.
