ASE Technology’s testing division is expanding into Mexico’s chipmaking hub, joining the rush of Asian manufacturers setting up operations closer to US customers.
ISE Labs, a unit of Taiwan’s ASE Technology Holding, purchased land in Guadalajara’s Axis 2 Industrial Park for a semiconductor packaging and testing facility. The move marks ASE’s latest push to strengthen its North American presence amid growing regional demand for chip services.
The new plant will be located in Jalisco state, which currently handles about 70% of Mexico’s semiconductor business. The facility will focus on advanced semiconductor component testing and packaging operations.
The Taiwanese company will collaborate with local education institutions to develop a skilled workforce, as the plant requires specialized engineers and technicians. ISE Labs CEO Xiang Shijie indicated the site would serve as a foundation for future expansion in North America.
The investment aligns with the broader trend of semiconductor companies diversifying their manufacturing bases beyond Asia. Major chipmakers have announced plans to build facilities in Mexico to capitalize on its proximity to the US market and skilled labor force.
ASE Technology Holding, listed under ticker 3711 in Taiwan, is one of the world’s largest providers of semiconductor packaging and testing services.