April 14, 2026 /SemiMedia/ — ASE Technology Holding plans to start construction on six new plants this year, its largest expansion to date, as demand from AI continues to push up advanced packaging needs.

Chief Operating Officer Wu Tian-yu said the company may raise its capital spending from an earlier plan of about $7 billion, with more details to be shared in its upcoming earnings call.

The new projects highlight how fast demand is growing. One key site in Kaohsiung’s Renwu area will involve investment of over NT$100 billion, with most of the spending to be reflected next year.

The company said AI is still in an early stage, but demand for hardware is rising quickly. Advanced packaging is becoming a key part of the supply chain, especially as chips get more complex.

Taiwan plays a central role in this area, supported by its strong base in both wafer manufacturing and packaging. From foundries to OSAT players, the supply chain is closely linked.

To support the expansion, ASE plans to hire about 3,000 engineers this year and another 1,000 next year. The company said its Kaohsiung operations benefit from a cluster effect, helping speed up hiring and production.

On technology, ASE is pushing forward with several areas. CoWoS, panel-level packaging and power-related solutions are already in use, while co-packaged optics (CPO) and silicon photonics are still at an early stage. The company expects initial volume production to begin this year, though wider adoption may take time.

ASE also said it is speeding up construction timelines to meet customer demand. At the Renwu site, the time from tender to ground-breaking was shortened, with completion targeted within about one year.