ASE Technology Holding, the world’s largest chip assembly and testing provider, committed to sustained capital expenditure in advanced packaging technologies as artificial intelligence applications drive unprecedented demand for sophisticated chip integration services.
Chief Operating Officer Wu Tianyu told shareholders at the company’s annual meeting that ASE would maintain substantial investments until at least 2026, describing the approach as “not being soft” on spending. The Taiwan-based company expects revenue from advanced packaging and testing to more than double to $1.6 billion this year, reflecting surging demand for technologies that bundle multiple chips into single packages.
Wu projected 10% growth in advanced packaging revenue for 2025, driven largely by CoWoS technology, which has become essential for AI chip production and is used by virtually all major AI processor manufacturers. The company’s panel-level packaging operations will begin production this quarter, with substrate dimensions adjusted to 310×310 millimeters.
ASE continues expanding in Southeast Asia, targeting automotive and robotics applications as clients seek supply chain diversification. The company recently launched its fifth plant in Malaysia, expanding floor space from 1 million to 3.4 million square feet.
While Wu maintained optimism about the semiconductor market potentially reaching $1 trillion within a decade, supply constraints remain acute. Industry leaders acknowledge that advanced packaging capacity, rather than chip manufacturing itself, has become the primary bottleneck for AI processor shipments.
