Taiwan's ASE to invest $200m in 'square' AI chip packaging tech

CEO aims to have samples by 2026 but lack of machines poses bottleneck

20250219  ASE factory2

Leading chip packager ASE Technology is exploring cutting-edge packaging methods to further boost computing performance. (Photo by Cheng Ting-Fang)

CHENG TING-FANG

PENANG, Malaysia -- Top chip packaging provider ASE Technology Holding is investing $200 million to trial next-generation chip packaging technology built on square substrates, rather than traditional round wafers, in an attempt to boost AI computing performance.

CEO Tien Wu told reporters that his team is working with suppliers to build a test production line this year at its most important research and development hub in Kaohsiung, Taiwan, and to prepare samples for customers by next year. The $200 million initial investment covers only the purchase of machines for an initial small-scale production line and does not include total R&D spending.

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