ASE Technology Holding, a global leader in semiconductor packaging and testing, is expanding its advanced packaging capacity by acquiring the K18 factory from Hongjing Construction for NT$5.263 billion (approximately US$168.8 million). This strategic move is aimed at meeting the company’s future production requirements and enhancing its advanced packaging capabilities.
The K18 factory, located in Kaohsiung, covers approximately 32,900 square meters and was initially developed by ASE Semiconductor and Hongjing Construction in 2020. ASE exercised its preemptive right to purchase the facility to support its growing demand for wafer bump packaging and flip-chip packaging processes. The acquisition is expected to contribute approximately NT$701 million (approximately US$22.5 million) in profit, with a per-share profit of NT$2.59, to be recognized in the third and fourth quarters.
ASE reported impressive financial results for July, with self-financed revenue reaching NT$51.596 billion, marking a 10.0% monthly increase and a 6.7% annual rise. For the first half of the year, the company achieved revenue of NT$273 billion, an operating profit of NT$16.54 billion, and a net profit attributable to the parent company of NT$13.46 billion, resulting in a net profit per share of NT$3.12.
In response to increasing demand for advanced packaging, ASE is exploring global expansion opportunities, including potential investments in Japan, the United States, and Mexico. Recently, the company announced plans to acquire land in Kitakyushu City, Japan, to further expand its production capacity.
Additionally, ASE has acquired two packaging and testing plants from Infineon in the Philippines and South Korea, with expected revenue contributions starting in the third quarter. The company is also expanding its presence in Malaysia, with a new factory set to begin mass production in the first quarter of 2025.
In the United States, ASE opened its second factory in San Jose, California, to enhance testing service capabilities. Together with its Fremont facility, the total operating space now exceeds 150,000 square feet, bolstering the U.S. semiconductor supply chain.
