News
ASE Technology subsidiary SPIL acquires United Regeneration plant for advanced packaging expansion
Wednesday, January 14, 2026 at 10:52 AM
ASE Technology Holding subsidiary SPIL has acquired United Regeneration's Chunan plant for NT$2.8 billion to expand advanced packaging capacity for AI chips. The move aims to alleviate CoWoS supply constraints, with ASE's advanced packaging revenue projected to reach $4 billion this year. Analysts anticipate ASE's capacity will double by 2026, supporting major customers including NVIDIA, AMD, Broadcom, and Amazon AWS.
Context
ASE Technology subsidiary SPIL has acquired a facility from United Renewable Energy for NT$2.8 billion to accelerate its advanced packaging expansion. This strategic move aims to alleviate the global supply crunch for CoWoS and 2.5D packaging, positioning ASE as a primary partner for TSMC's outsourced demand. The acquisition follows a broader industry trend of aggressive capacity expansion, mirrored by recent multi-billion dollar plant purchases by Micron, as firms rush to secure infrastructure for the AI hardware boom.
The expansion is expected to double ASE’s advanced packaging capacity by 2026, with related annual revenue projected to reach $4 billion this year. The company's proprietary FoCOS technology has already secured major design wins for Nvidia’s Vera CPUs, AMD’s Venice servers, Broadcom’s network chips, and Amazon’s Trainium accelerators. As AI chip architecture shifts toward complex multi-chip integration, ASE is positioning itself as a vital bottleneck-solver for the global semiconductor supply chain through 2027.
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