ASE to build new packaging facility in Kaohsiung
Taipei Times reports that ASE, the world’s biggest chip assembly and testing service provider, said it is investing $578.6M to build a new advanced chip packaging facility in Kaohsiung to cope with fast-growing demand from artificial intelligence (AI), high-performance-computing (HPC) and automotive applications. The new fab, called K18B, is to commence operation in the first quarter of 2028, offering chip-on-wafer-on-substrate (CoWoS) chip packaging and final testing services.
The investment came as ASE in July told investors it would accelerate capacity growth to mitigate supply issues, and would boost spending by 16 percent. All of its leading-edge capacity in Taiwan is fully utilized, it said.
A wide spectrum of system-level chip packaging technologies would be available at the new factory, from new panel-level packaging technology, dubbed fan-out chip-on-substrate (FOCoS), to copper pillar bump and flip-chip ball grid arrays for CoWoS and chiplets, it said.
FOCoS technology is reportedly suitable for large package sizes and packages with high input-output density that are designed for networking and server applications.
FOCoS is one of the panel-level packaging technologies that is under development by multiple companies, including TSMC and memory chip packaging service provider Powertech.
ASE will boost equipment capital expenditure by up to 16 percent for this year to about $3 B to fund the capacity expansion, including some new areas such as final test, burn-in and system-level test technologies.
Amkor Technology Breaks Ground on Advanced Packaging Campus in Arizona
Amkor’s portfolio includes advanced packaging, wafer-level processing, and system-in-package solutions targeting applications for smartphones, data centers, artificial intelligence, automobiles and wearables. The company just announced the expanded planned investment of its new state-of-the-art outsourced semiconductor advanced packaging and test campus in Arizona.
The expanded investment includes additional cleanroom space and a second greenfield packaging and test facility, increasing total project investment by more than $5 billion, to a total of $7 billion across two phases. Amkor’s investment will be the first U.S. based high volume advanced packaging facility.
Upon completion of both phases, the campus will offer over 750K sq ft of cleanroom space. Construction of the first manufacturing facility is expected to be completed in mid-2027, with production beginning in early 2028.
Amkor’s advanced packaging and testing facility groundbreaking serves as a milestone in Arizona’s rise as a U.S. semiconductor powerhouse. This multibillion-dollar investment brings critical back-end capabilities onshore, and adds to the more than $210 billion in projects already completed or planned for the state’s chip industry. With TSMC’s and now Amkor’s growing presence, Arizona is firmly entrenched at the forefront of US semi activity.
The new greenfield facilities will serve as a cornerstone of America’s advanced packaging capabilities, supporting key customers including Apple and NVIDIA. Amkor’s expanded investment is supported by the CHIPS for America Program, the Advanced Manufacturing Investment Tax Credit, and state and local governments.
The campus will focus on advanced packaging and testing technologies and will complement TSMC’s front-end wafer fabrication for full end-to-end semiconductor manufacturing.
The COO of Apple noted that “… we’re excited to help lead the creation of an end-to-end silicon supply chain in America… Amkor’s new facility will package and test the Apple silicon produced at TSMC Arizona just down the road.”
US-SMC
A recent poll by the Taipai Times revealed that half of the Taiwanese respondents fear TSMC becoming “US-SMC”. Currently TSMC controls 64% of the global contract chipmaking market and Taiwan is producing 64% percent of the world’s semiconductors.
Its Arizona fab is reaching full capacity and TSMC has announced plans for six additional US fabs, but…TSMC’s most advanced N2 node research, critical intellectual property development and top engineering talent continue to reside in Taiwan.
TSMC’s global expansion appears to a strategy that leverages geographical diversification. The Arizona operation will be producing chips for Apple, AMD, Qualcomm, Broadcom and Nvidia. The US companies account for the majority of TSMC’s revenue, making US manufacturing logical and inevitable.
This expansion reduces the geopolitical risk associated with Taiwan-only production, making TSMC a more stable partner for global customers.
The Taipei Times notes that “ As long as Taiwan remains the epicenter of semiconductor innovation — developing next-generation processes, training elite engineers, and housing advanced research and development — the nation would maintain its indispensable role regardless of where manufacturing occurs …In this environment, Taiwan’s choice is clear: Lead the globalization of semiconductor manufacturing or watch others build alternatives.
For all the latest in Adv Pkging stay linked to IFTLE……………
