ASE Technology Holding Co. is expanding its advanced packaging operations after securing substantial orders for Nvidia Corp.’s latest artificial intelligence chips, according to people familiar with the matter.
The world’s largest chip packaging and testing company is preparing its K18 facility to handle increased demand for Chip-on-Wafer-on-Substrate Large (CoWoS-L) packaging, used in Nvidia’s upcoming Blackwell platform. The expansion follows ASE’s NT$5.26 billion ($165 million) purchase of the K18 plant in August.
Industry watchers expect ASE’s monthly CoWoS capacity to hit 10,000 units by 2025, representing more than 10% of Taiwan Semiconductor Manufacturing Co.’s projected output. The K18 facility will begin equipment installation in the first half of 2025, with mass production starting later that year.
TrendForce predicts CoWoS-L demand will surpass traditional CoWoS-S technology by 2025, accounting for over 60% of TSMC’s advanced packaging production. The new technology can stack up to 12 HBM3 memory chips, making it crucial for next-generation AI processors.
