With explosive demand for AI chips and HPC, advanced packaging has become a critical bottleneck. ASE Technology Holding is racing to expand. On April 15, its subsidiary ASE Semiconductor announced the acquisition of Innolux’s Fab 5 in Tainan’s Southern Taiwan Science Park for NT$14.85 billion (~RMB 3.21 billion) .

The facility spans 184,300 square meters of building area. To accelerate production, ASE will pay an additional NT$982 million for early handover, covering Innolux’s removal costs for existing equipment.

This move follows TSMC’s acquisition of another Innolux plant in 2024. Both giants are now turning Southern Taiwan into a global hub for advanced process and packaging.

ASE’s 2026 expansion is already in overdrive. A new plant is under construction in Kaohsiung’s Renwu Industrial Park. CEO William Wu stated that six factories will break ground simultaneously in 2026. Analysts estimate total 2026 capex could exceed $7 billion – an all-time high.

ICgoodFind : ASE’s rapid fab acquisition and record capex highlight the fierce race for advanced packaging capacity. ICgoodFind helps you secure supply from packaging leaders driving the AI silicon boom.