ASE Technology Holding Initiates Largest Production Expansion in History: Six New Factories to Launch This Year, CPO to Simultaneously Enter Mass Production

The world's largest semiconductor packaging and testing company, ASE Technology Holding, is pushing forward with its largest-ever capacity expansion.

According to media reports on the 10th, the company will start construction on six new factories globally this year, with capital expenditure initially set at $7 billion and still having room for upward revision; meanwhile, Co-Packaged Optics (CPO) mass production will also officially commence this year, marking a comprehensive acceleration of the company's layout in the face of AI-driven hardware manufacturing demand.

ASE Technology Holding CEO Eddie Wu recently presided over the groundbreaking ceremony for the Renwu new factory in Kaohsiung, Taiwan Province, and made statements regarding the company's overall expansion plans. According to reports, Wu stated that six new factories will break ground simultaneously worldwide this year, and 2026 will become the year with the largest construction scale in ASE's history.

Against the backdrop of rapid expansion in the AI industry chain, Wu pointed out that hardware manufacturing capacity has become a significant bottleneck. He revealed that the company's capital expenditure for this year was initially set at $7 billion, but it still has room for upward revision due to strong demand. The specific adjustment will be further disclosed at an upcoming investor conference.

Renwu Base to Invest Over NT$100 Billion, Six Factories to Break Ground This Year

According to reports, ASE plans to invest over NT$108.3 billion in its Renwu base in Kaohsiung, Taiwan Province. The first phase of construction is expected to commence operations in April 2027, followed by the second phase in October of the same year.

Wu emphasized at the groundbreaking ceremony that the expansion demand for hardware manufacturing triggered by the AI wave has constituted a major industrial bottleneck, prompting ASE to advance its global synchronized expansion. The simultaneous groundbreaking of six new factories this year sets a record for the company's largest single-year construction scale.

Regarding capital expenditure, Wu clearly stated that with continued strong market demand, the initially planned annual expenditure of $7 billion still has room for upward adjustment, with specific details to be disclosed at the upcoming investor conference.

CPO Mass Production This Year Disclosed for the First Time; Large-Scale Commercialization Dependent on Market

When asked about the progress of Co-Packaged Optics (CPO) and silicon photonics technology, Wu publicly disclosed for the first time that CPO will officially begin mass production this year, characterizing the rise of optical communication as an "undeniable trend."

However, Wu also admitted that the timeline for CPO to achieve significant economic benefits and widespread large-scale application globally will ultimately depend on market dynamics.

Regarding market rumors about ASE potentially acquiring parts of panel manufacturer Innolux's factories, Wu stated that any related developments will be disclosed through major information announcements in accordance with regulations, without directly responding to the rumors.

In terms of US market layout, Wu revealed that the company is actively in discussions with major clients regarding expansion plans in the United States, and related progress will be communicated at the appropriate time. ASE has not yet provided further details on the specific timeline or scale of US construction.