ASE Expands its Chip Packaging and Testing Facility to Enable Next-Gen Applications

• Advanced Semiconductor Engineering, Inc. (ASE, a member of ASE Technology Holding Co., Ltd. TAIEX: 3711, NYSE: ASX) today officially launched its fifth plant in Penang, Malaysia.

• The new plant will see improved manufacturing capabilities for advanced packaging technologies, and comes at a time when next-gen use technologies such as GenAI are increasingly in demand.

BAYAN LEPAS, Malaysia - February 18, 2025 -- ASE has officially launched its fifth plant in Penang, which will significantly build on the company’s strong packaging and testing capabilities in the Bayan Lepas Free Industrial Zone. The new plant is part of a strategic expansion plan that will expand the floor space of ASE’s Malaysia facility from its current area of 1 million square feet to approximately 3.4 million square feet.

Today’s launch ushers in a new era of smart manufacturing for ASE in Malaysia. Over the years, the Malaysia site has been upgrading its manufacturing operations by integrating Industry 4.0 technology and factory automation solutions. From the detection of abnormalities using AI, to improving yield and optimizing production processes through data analysis, the new plant harnesses the power of Artificial Intelligence of Things (AIoT) to enhance productivity and efficiency on the factory floor.

Speaking at the event, Penang Deputy Chief Minister II Yang Berhormat Jagdeep Singh Deo A/L Karpal Singh mentioned, “Backed by over fifty years of industrial excellence, Penang continues to be a premier investment destination for global industrial leaders seeking to expand in Southeast Asia. The establishment of ASE’s new chip packaging and testing facility marks a significant milestone, introducing cutting-edge technological capabilities to its decades-long operations in the state. This further cements Penang’s position as a powerhouse in the global semiconductor landscape, reinforcing its reputation as the ‘Silicon Valley of the East.’”

Meanwhile, Mr. Sivasuriyamoorthy Sundara Raja, Deputy Chief Executive Officer, Investment Promotion and Facilitation of MIDA, emphasised ASE’s contribution to Malaysia’s growing technological leadership, “ASE’s continued expansion here is a testament to the long-standing partnership between Malaysia and Taiwan. To stay ahead in this ever-changing and competitive field, it’s crucial for our businesses to keep innovating and team up with key industry players. That’s why I encourage our local companies to look at opportunities to collaborate with leaders like ASE. These partnerships will not only drive demand for precision engineering, automation, and semiconductor manufacturing, but they’ll also help our homegrown leaders.”

Also in attendance was Dr. Tien Wu, CEO of ASE Inc, who hailed the facility as a critical step in strengthening ASE’s global footprint, “Southeast Asia is increasingly becoming an important base for semiconductors, given its growing digital economy propelling the demand for advanced chips and its shift towards design and chip manufacturing in recent years. With Malaysia solidifying its position as a regional semiconductor hub, we see our expanded facility playing an even greater role across the global semiconductor value chain and contributing to the country’s economic growth. ASE remains committed to being a driving force for the development of the local and regional semiconductor industry, while continuing to meet and exceed the needs and expectations of our customers.”

With the semiconductor market on track to reach US$1 trillion in revenue in the next decade, OSAT manufacturing remains critical to the global electronics supply chain. As a leading OSAT player, ASE Malaysia has been serving major semiconductor companies since 1991. The new plant comes online at a time when advanced AI chips are increasingly required across various next-gen applications in machine learning, enterprise-led AI use cases, edge computing, electric vehicles and autonomous driving, and more. To that end, ASE is committed to investing in resources and human capital to capture more market share and extend the breadth and depth of its service offerings. The facility expansion will also have greater hiring as well as training and development needs, with an additional 1,500 employees over the next few years.

About MIDA

MIDA is the government’s principal investment promotion and development agency under the Ministry of Investment, Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 21 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on X, Instagram, Facebook, LinkedIn, TikTok and YouTube.

About InvestPenang

InvestPenang is the Penang State Government’s principal agency for the promotion of investment. Its objectives are to develop and sustain Penang’s economy by enhancing and continuously supporting business activities in the State through foreign and local investments, including spawning viable new growth centers. To realise its objectives, InvestPenang also runs initiatives like the SMART Penang Center (providing assistance to SMEs), Penang CAT Center (for talent attraction and retention), and Global Business Services (GBS) Focus Group (promoting and developing digital economy) and Penang Silicon Design @5km+ (establishing a unique and interconnected ecosystem for IC design and technology enterprises). For more information, please visit https://investpenang.gov.my/.

About ASE, Inc.

Advanced Semiconductor Engineering, Inc. (ASE), a member of ASE Technology Holding Co., Ltd. (NYSE: ASX, TAIEX: 3711) is the leading global provider of semiconductor manufacturing services in assembly and test. Alongside a broad portfolio of established assembly and test technologies, ASE is also delivering innovative VIPack™, advanced packaging, and system-in-package solutions to meet growth momentum across a broad range of end markets, including AI, automotive, 5G, high-performance computing, and more. To learn about our advances in SiP, fanout, MEMS and sensor, flip chip, and 2.5D, 3D and TSV technologies, all ultimately geared towards applications to improve lifestyle and efficiency, please visit: ASE Website.