ASE Technology Holding Co. will acquire a manufacturing facility from WIN Semiconductors Corp for NT$6.5 billion ($217 million), the Taiwan-based semiconductor assembler announced Monday. The purchase represents the company’s latest capacity expansion as demand for advanced chip packaging intensifies.
The 21,800-ping facility in Kaohsiung’s Southern Taiwan Science Park will focus on sophisticated packaging technologies including 2.5D, 3D packaging and wafer-level assembly. ASE cited full utilization of existing advanced packaging lines as justification for the investment, positioning the acquisition to serve artificial intelligence and high-performance computing customers.
The deal underscores mounting pressure on outsourced semiconductor assembly and test providers to expand capabilities rapidly. ASE, which controls nearly 45% of the global OSAT market according to TrendForce, has set ambitious revenue targets with advanced packaging and testing operations expected to generate $1 billion more than 2024 levels.
Testing operations are outpacing traditional packaging growth, with management projecting test revenue expansion at twice the rate of packaging services. The company expects testing to represent 20% of total assembly and test revenue by the fourth quarter, benefiting from higher margins in the segment.
ASE reported July consolidated revenue of NT$51.54 billion, up 4.1% month-over-month but down 0.1% year-over-year. The company forecasts third-quarter revenue growth of 12-14% in dollar terms, though Taiwan dollar strength may pressure margins by 1 to 1.2 percentage points.