ASE Technology Holding Co., Ltd. (ASEH), the world’s largest provider of semiconductor packaging and testing services, officially broke ground on its new $3.4 billion manufacturing and testing center in Kaohsiung, Taiwan, on April 20, 2026. This investment, equivalent to approximately NT$110 billion, marks one of the largest single-site expansions in the company’s history. The project is situated within the Nanzih Technology Industrial Park and is designed to address the increasing demand for advanced semiconductor testing services driven by the global expansion of artificial intelligence and high-performance computing.
The new facility will serve as a specialized cluster for high-tech semiconductor testing, integrating a suite of proprietary AI-driven smart manufacturing technologies. According to technical specifications released by ASE, the center will deploy Smart Factory 4.0 standards, utilizing a centralized AI control system to manage over 2,000 automated guided vehicles and robotic arms. This system is engineered to perform real-time data analysis on testing yields, allowing for autonomous adjustments to machinery to minimize downtime and maximize throughput. The facility will prioritize testing for advanced nodes, including 2-nanometer and 3-nanometer chip architectures.
The infrastructure plan includes the construction of two primary buildings, designated as K27 and K28. These structures will house cleanrooms rated at Class 100 and Class 1000 standards, covering a total floor area of approximately 200,000 square meters. The testing services offered at the site will encompass wafer probing, final testing, and system-level testing. ASE officials confirmed that the facility would also feature a dedicated research and development wing focused on silicon photonics and co-packaged optics testing, which are critical for next-generation data center applications.
In terms of environmental and operational efficiency, the center is designed to meet LEED Gold certification requirements. It will incorporate a water recycling system capable of reclaiming 75% of the water used in the testing process and a rooftop solar array expected to generate 5 megawatts of power. The project is expected to create approximately 5,200 new positions, including roles for 1,500 specialized AI and software engineers.
The groundbreaking ceremony was attended by ASE Chairman Jason Chang and local government officials. In a formal statement, the company noted that the Kaohsiung center is a strategic component of its long-term roadmap to consolidate its leadership in the Outsourced Semiconductor Assembly and Test sector. Construction is scheduled to proceed in three phases, with the first phase of equipment installation slated for the fourth quarter of 2027.