[13-Apr-2026] Taiwan-based Advanced Semiconductor Engineering (ASE), the world’s largest OSAT provider, continues to scale its advanced packaging and testing capabilities to meet growing semiconductor demand.
The company has broken ground on a new IC testing facility in Kaohsiung, southern Taiwan, representing a total investment of NT$108.3 billion (approximately $3.4 billion). Located in the Renwu Industrial Park, the site will focus on wafer and chip testing services and is scheduled to begin operations in April 2027.
ASE aims to establish a high-tech semiconductor testing cluster in the park. Supporting this initiative, WinWay Technology and Horng Terng Automation will also establish operations there. Combined investments in the park are expected to reach NT$114.5 billion ($3.6 billion).
Strong Demand Driven by AI and Advanced Packaging
ASE is experiencing robust demand for advanced packaging and testing services, largely fueled by AI and next-generation semiconductor applications. To address this, the company is aggressively expanding capacity, with six new facilities currently under construction.
Capital expenditures are expected to increase to $7 billion in 2026, up from $5.5 billion in 2025.
The company’s testing business is becoming a key growth driver, with revenues rising 36% in 2025. Meanwhile, advanced packaging revenue is projected to double from $1.6 billion in 2025 to $3.2 billion in 2026, with approximately 75% coming from packaging and 25% from testing.
Testing Capabilities and Equipment Scale
IC testing relies heavily on automated test equipment (ATE), the most capital-intensive component of the process. ASE sources testers from leading suppliers such as Teradyne, Tokyo Electron, and Advantest.
As of January 2026, ASE operates 7,456 testers globally, supported by a wide range of additional equipment including handlers, probers, scanners, and development systems. These tools enable comprehensive testing of both packaged chips and wafers, ensuring performance and reliability across a broad range of semiconductor applications.
