Leading Taiwanese OSATs, including ASE, Powertech, and KYEC, are significantly increasing CapEx through 2026 to expand advanced packaging and testing capacity in response to surging AI chip demand and TSMC's growing dominance in advanced packaging. They are focusing on technologies like FOPLP, panel-level packaging (PiFO for Powertech), and addressing longer testing times for AI chips, while also exploring expansion in Southeast Asia and the US.