The chip packaging giant plans 15 new facilities this year and may increase spending beyond its $8.5 billion capex budget as it prepares for sustained AI demand through the end of the decade.
ASE Technology Holding, the world’s largest semiconductor packaging and testing company, is significantly expanding its manufacturing footprint as demand for artificial intelligence infrastructure continues to grow, Chief Operating Officer Tien Wu said on Wednesday.
The Taiwanese company plans to add 15 new facilities this year, reflecting its confidence in sustained demand for advanced chip packaging services. The expansion includes six new greenfield sites for ASE, seven for subsidiary Siliconware Precision Industries (SPIL), and additional facilities acquired from Innolux earlier this year.
Wu said the company’s investment strategy is aimed at supporting not only near-term demand but also growth expected through the end of the decade. He emphasized that the expansion plans are designed to meet AI-related requirements well beyond 2029 as the industry continues to scale computing infrastructure.
ASE has earmarked $8.5 billion in capital expenditures for 2026, although Wu indicated total spending could exceed that figure depending on market conditions and customer demand.
The company is also increasing its presence in the United States. ASE currently operates two chip-testing facilities in California and is planning two additional sites. Wu added that the company is evaluating potential investments in Arizona in response to customer requests, though no final decision has been made on the scope or timing of such projects.
The expansion comes as semiconductor companies across the supply chain ramp up investments to support the rapid growth of artificial intelligence applications. Advanced packaging has become a critical part of AI chip production, enabling higher performance and greater computing efficiency.
SPIL, a key ASE subsidiary, is one of the major packaging partners for Nvidia’s AI processors. Nvidia previously announced plans to build up to $500 billion worth of AI server infrastructure in the United States alongside manufacturing and supply-chain partners, including SPIL. However, the subsidiary has not yet disclosed any specific investment commitments linked to that initiative.
ASE’s latest expansion underscores the industry’s efforts to prepare for years of anticipated AI-driven demand.
