KAOHSIUNG, Taiwan, June 24 (Reuters) - Taiwan's ASE Technology Holding, the world's largest chip packaging and testing provider, is expanding capacity to meet AI demand, Chief Operating Officer Tien Wu said on Wednesday.
Here are some details:
• Wu said the holding company is adding 15 new sites this year, including six greenfield sites for ASE, seven greenfield sites for its unit Siliconware Precision Industries, and sites acquired from Taiwan's Innolux Corporation earlier this year.
• Wu reiterated that this year's capital expenditure is budgeted at $8.5 billion and may exceed that amount.
• Wu said that the factory expansion is not just for the next two years, but for 2029 and beyond to meet strong AI demand.
• The company said it has been investing in the U.S., with two testing factories in California and two more factories planned.
• Regarding investment in Arizona at a particular customer's request, Wu said the company has been evaluating plans but needs to carefully consider what investments to make.
• Nvidia said last year it planned to build up to $500 billion worth of AI server infrastructure in the United States with partners including ASE subsidiary Siliconware Precision Industries, but the subsidiary has yet to announce any investment plans. Siliconware Precision Industries (SPIL) is a major packaging supplier for Nvidia's AI chips.
(Reporting by Wen-Yee Lee; Writing by Ben Blanchard; Editing by Kate Mayberry and Ronojoy Mazumdar)
