ASE Buys Innolux Fab for NT$14.85 Billion to Accelerate AI Packaging Expansion
Generative AI and high-performance computing chips continue to drive demand for advanced packaging, making assembly and testing capacity a critical part of supply-chain expansion. ASE Technology Holding, the world’s largest semiconductor assembly and testing provider, can shorten construction lead times by acquiring an existing large-scale facility through its ASE Semiconductor subsidiary. The deal also reflects the Southern Taiwan Science Park’s further transformation from a display manufacturing base into a hub for advanced processes and packaging.
On April 15, 2026, ASE Technology Holding announced on behalf of ASE Semiconductor that the subsidiary would buy Innolux’s Fab 5 building and ancillary facilities in the Southern Taiwan Science Park’s Xinshi District in Tainan for NT$14.85 billion before tax. The building covers about 184,300 square meters. Innolux expects a disposal gain of about NT$13.3 billion, while ASE will separately reimburse approximately NT$982 million in equipment-removal costs to accelerate the facility’s handover and the expansion of advanced packaging capacity.
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The history behind this eventASE Technology Posts Record February Revenue on Strong AI Packaging and Testing Demand
ASE Technology Holding is a leading global provider of semiconductor packaging and testing services, and its performance is a barometer of conditions in chip back-end processing. As AI chips become more sophisticated and complex to integrate, rising demand for advanced packaging and high-end testing is driving the company’s revenue growth and capacity investment.
ASE Technology said its consolidated revenue reached NT$52.097 billion in February, up 15.9% from a year earlier and the highest ever for the month. The company attributed the growth mainly to demand for advanced AI packaging and testing and expects total capital expenditure to reach $7 billion this year to expand related capacity.
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