ASE Initiates Largest-Ever Global Expansion to Double CoWoS Capacity to 45,000 Wafers/Month by Late 2027

July 19, 2026

Industry Blog/Analysis International

Overview

ASE is undertaking its largest global factory expansion in history, commencing construction of six new packaging and testing plants in 2026. This aggressive ramp aims to increase monthly CoWoS capacity from 20,000 wafers by end-2026 to 40,000-45,000 by end-2027. This monumental investment addresses surging AI chip demand, reinforcing advanced packaging’s critical role in the semiconductor supply chain.

In Depth

Key Findings

ASE, a global leader in advanced packaging, is embarking on its largest-ever factory expansion project worldwide to meet the explosive demand for AI chips. The company plans to initiate construction of six new packaging and testing plants globally in 2026, targeting a substantial increase in its monthly CoWoS (Chip-on-Wafer-on-Substrate) capacity to 20,000 wafers by the end of 2026 and further doubling it to 40,000-45,000 wafers by the end of 2027.

Technical and Clinical Details

ASE’s ambitious expansion involves an investment exceeding NT$108.3 billion (approximately $3.4 billion) in Kaohsiung Renwu, Taiwan, and the acquisition of Innolux’s Southern Science Park Fab5 for establishing advanced production lines. This strategy is designed to significantly boost its CoWoS and related advanced packaging capabilities. Concurrently, Amkor is expanding its Arizona campus and has inked a ten-year agreement with TSMC to secure CoWoS packaging and testing capacity in the U.S. Samsung also intends to establish a $4 billion packaging and testing hub in Thai Nguyen Province, Vietnam, initially focusing on traditional memory testing with long-term plans to evolve into HBM packaging. TSMC’s Arizona project is equally comprehensive, including eight wafer fabs and four advanced packaging facilities, with local packaging mass production anticipated around 2028.

Background and Industry Context

The relentless advancement of AI is driving unprecedented demand for high-performance semiconductors such as CPUs, GPUs, and HBM. These chips necessitate sophisticated advanced packaging technologies for complex 3D stacking and heterogeneous integration. CoWoS has emerged as a core technology for high-performance AI accelerators, and its limited availability has become a critical bottleneck constraining overall AI chip shipments. OSAT companies like ASE are responding with record-breaking capital expenditures to mitigate this bottleneck and prepare for future AI demand. This trend unequivocally highlights the strategic importance of back-end packaging, which now plays as crucial a role as front-end lithography in semiconductor manufacturing.

Strategic Significance and Outlook

ASE’s massive expansion, coupled with strategic collaborations among industry leaders, heralds a ‘golden age’ for advanced packaging in the AI era. The increased CoWoS capacity will help stabilize the supply of AI chips from major vendors like Nvidia and AMD, accelerating the broader adoption of AI technologies. Furthermore, the geographic diversification of manufacturing footprints by these companies is expected to enhance supply chain resilience and mitigate geopolitical risks. Advanced packaging will continue to be a pivotal factor in driving AI chip performance improvements and cost efficiencies in the foreseeable future.

Source: https://eu.36kr.com/en/p/3899029791623044

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