ASE's SPIL advanced-packaging subsidiary reportedly nears Arizona expansion as TSMC CoWoS and Amkor accelerate US advanced packaging deployment.
ASE’s U.S. expansion appears poised for a significant milestone as demand for advanced packaging capacity intensifies. According to the Central News Agency, ASE subsidiary SPIL is reportedly in the final stages of planning a new facility in Arizona, with a decision expected shortly. The proposed site would provide back-end testing services, marking a pivotal step in ASE’s broader U.S. expansion strategy if finalized.
During its investor conference in late July, ASE clarified that its process development remains centered in Taiwan for the time being, though it plans to expand into the United States or other regions when conditions align. The company simultaneously raised its 2026 capital expenditure target by US$2 billion to US$10.5 billion. This revised budget allocates approximately US$4 billion toward new plants and facilities, with the remaining US$6.5 billion designated for equipment.
Concurrently, SPIL is aggressively scaling its advanced packaging operations in Taiwan. Construction commenced in mid-August on a new plant in Douliu, which is slated to introduce CoWoS advanced packaging capabilities. Over the past two years, SPIL has expanded facilities across Taichung, Changhua, Yunlin, Hsinchu, and Tainan, accumulating a total investment exceeding NT$200 billion. The company has also maintained close strategic ties with NVIDIA, while collaborating with AMD to develop and validate next-generation 2.5D bridge-interconnect advanced packaging technology.
Other major packaging providers are similarly increasing their investments in Arizona. As reported by Investing.com, Amkor has raised its planned investment for the second phase of its Arizona expansion from US$7 billion to US$12 billion, driven by stronger customer demand. The Arizona campus is scheduled to begin production in 2028 and achieve full capacity by 2030. Additionally, GuruFocus notes that Amkor signed a ten-year agreement with TSMC in June to deliver advanced packaging and testing services in Arizona, directly supporting TSMC’s growing fabrication operations in the state.
TSMC is concurrently ramping up advanced packaging capacity in both the United States and Taiwan. Citing institutional investors, the Economic Daily News reports that TSMC’s CoWoS capacity is projected to double from 130,000 wafers per month by the end of 2026 to 260,000 by the end of 2028, with expansion concentrated at its AP9 and AP10 sites in Arizona and its AP7 site in Taiwan. However, surging demand continues to constrain available capacity, prompting customers to actively qualify alternative suppliers. Institutional investors estimate that non-TSMC players, including ASE and Amkor, will collectively add capacity equivalent to 110,000 CoWoS wafers per month by the end of 2028. For Intel’s EMIB-T technology, 12-inch CoWoS-equivalent capacity is forecast to reach 15,000–20,000 wafers per month in 2027, rising to 40,000–45,000 in 2028.
In mid-July, TSMC announced an additional US$100 billion investment in Arizona, which includes dedicated advanced packaging facilities. According to the Central News Agency, the company’s first advanced packaging facility in the state is planned to become operational before 2029.
[News] ASE’s SPIL Breaks Ground on Nearly TWD 100B Plant in Douliu to Boost CoWoS Capacity, Operations Set for 2028
[News] TSMC Reportedly Targets 22% 2nm, 16%+ 3nm Capacity Boost by Mid-2027; CoWoS to Double by 2028
(Photo credit: SPIL)
Please note that this article cites information from the Central News Agency, Investing.com, GuruFocus, and the Economic Daily News.