Taiwan’s ASE Technology Holding Co.’s subsidiary SPIL acquired a manufacturing facility from Tainergy Tech Co. for NT$3.02 billion ($95.6 million) in Taichung’s Central Taiwan Science Park, expanding its advanced chip packaging capacity as demand surges for artificial intelligence processors.
The deal, announced Monday, gives SPIL access to a modern facility built in 2021 with 5 hectares of land. The transaction is expected to generate NT$780 million in gains for Tainergy and requires shareholder approval at a February meeting.
Industry analysts note the facility’s state-of-the-art design makes it ideal for rapid equipment installation and production line setup. The site also provides room for future expansion, offering flexibility for long-term growth plans.
ASE is racing to increase capacity as customers like Nvidia Corp. and Advanced Micro Devices Inc. drive strong demand for high-performance computing chips. The company earlier projected its advanced packaging revenue would rise by $250 million this year, pushing the total above $500 million and doubling its previous target.
The company expects advanced testing services, currently a smaller portion of revenue, to grow significantly in 2025, potentially reaching 15-20% of its advanced technology business. ASE continues expanding its one-stop services including wafer sorting, final testing and burn-in testing.
