US tariff delay on Chinese chips prompts Taiwanese packaging and test firms to accelerate global expansion

The US is delaying tariffs on some Chinese-made chips until June 2027, which is seen as beneficial for Taiwanese semiconductor supply chain companies, particularly in packaging and testing. TSMC, ASE Technology Holding, King Yuan Electronics (KYEC), and Powertech Technology are expanding their global footprints to prepare for supply chain diversification. Overseas customers are accelerating decisions and requesting non-China production capacity timelines from suppliers for 2025-2026. ASE is considering advanced packaging facilities in Japan, Mexico, and Malaysia, and has an operational test plant in California. KYEC is benefiting from increased AI GPU/ASIC chip testing demand and expanding capacity in Taiwan and Singapore. Powertech Technology acquired AU Optronics' Hsinchu factory for FOPLP mass production and is expanding test equipment in its Japan subsidiary, with further CapEx planned for FOPLP in 2026.