SPIL, a Taiwan-based substrate provider, broke ground on a new facility in Yunlin, expanding advanced packaging capacity for AI chips.

Siliconware Precision Industries Co (SPIL) commenced construction of a new NT$100 billion (US$3.1 billion) chip-packaging plant in Douliou City, Yunlin County, to expand capacity amid artificial intelligence-driven supply bottlenecks. The Taichung-based company plans to offer advanced chip-on-wafer-on-substrate (CoWoS) packaging services at the facility, with first-phase operations beginning in 2028, according to SPIL vice chairman Chang Yen-chun.

"It would be a new growth engine for SPIL and allow the company to play an indispensable role in the global AI supply chains," Chang said in a statement.

SPIL, a major subsidiary of ASE Technology Holding Co—the world's biggest chip packaging and testing service provider—has benefited alongside its parent company from Taiwan Semiconductor Manufacturing Co's (TSMC) limited CoWoS capacity during the AI boom.

The Douliou plant represents SPIL's second advanced packaging facility in Yunlin County. Upon launching first-phase production, it is expected to create 1,300 jobs, rising to 2,200 jobs once fully operational. In September of last year, SPIL began operations at its first Yunlin plant in Huwei Township.

Taiwan's Minister of Economic Affairs Kung Ming-hsin said the new investment would enhance SPIL's advanced packaging capability, improve production efficiency and yield, and "elevate and safeguard Taiwan's position in the global semiconductor supply chains."

Over the past two years, SPIL has invested approximately NT$200 billion in new facilities across Taichung, Changhua County, Yunlin County, Hsinchu City, and Tainan, creating 8,000 jobs. To support raw material purchases and capacity expansions, the company plans to raise NT$16.19 billion by offering 810 million new shares, with parent company ASE set to subscribe to all of the new shares, according to Taiwan Stock Exchange filings.