Key Findings
ASE has significantly expanded its footprint in the advanced packaging sector, increasing its share of the semiconductor assembly and test business from 6% in 2024 to 13% in 2025. In 2024, ASE accounted for US$18.54 billion of the US$41.56 billion total revenue generated by the world’s top ten OSAT companies. For the full year 2025, ASE’s total revenue grew 8.4% to NT$645.4 billion, driven by a 17.8% increase in packaging revenue and a 31.8% increase in testing revenue.
Technical Details
ASE’s technical strategy is centered on the VIPack platform, which integrates several advanced frameworks:
- FOCoS (Fan-Out Chip-on-Substrate): Uses redistribution layers to integrate ASICs, chiplets, and HBM.
- FOCoS-Bridge: Incorporates localized silicon bridges to increase interconnect density between dies.
- CPO (Co-packaged Optics): Integrates optical components closer to compute silicon to overcome bandwidth and power constraints in AI data centers.
- Panel-Level Packaging: In 2026, ASE introduced an automated 310mm × 310mm panel-level packaging line to replace round wafers for large packages, with mass production scheduled for the first half of 2027.
Background and Context
The traditional semiconductor value chain separated IC design, foundry manufacturing, and OSAT packaging. However, as Moore’s Law scaling from 7nm down to 2nm becomes increasingly expensive, AI accelerators now require the integration of GPUs, ASICs, and multiple HBM stacks. This has shifted the industry toward 2.5D and 3D packaging, where chips are placed on the same interconnect structure or stacked vertically to enable high-speed communication.
Significance and Outlook
The integration of ASE and Siliconware Precision Industries (SPIL) under a joint holding company since 2018 provided the scale and R&D synergies necessary to lead the OSAT market. As packaging now determines overall system performance, ASE is moving toward system-level engineering, combining chiplet architectures and optical communications to meet the computing demands of AI.
Source: https://techsoda.substack.com/p/dr-change-column-16-packaging-takes
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