In response to the rise of the AI wave and the continued growth in demand for advanced semiconductor manufacturing processes, ASE Semiconductor Engineering, Inc. (ASE) held a groundbreaking ceremony on October 3 for its new K18B plant in the Nanzih Technology Industrial Park in Kaohsiung. The company announced an investment of NT$17.6 billion to build a new facility with an expected annual output value of NT$12 billion per hectare. The new plant will fully integrate the park's production lines and expand packaging and testing capacity, demonstrating ASE's commitment to continuing its deep presence in Kaohsiung and strengthening its layout within the AI-era semiconductor supply chain. The K18B plant is expected to be completed in the first quarter of 2028 and will create nearly 2,000 new jobs.
At the ceremony, Yang Chih-Ching, Director-General of the Bureau of Industrial Parks (BIP) of the Ministry of Economic Affairs (MOEA), stated that Taiwan holds a leading advantage in the global AI semiconductor supply chain. The government is guiding development through policies and the construction of industrial parks to reinforce systematic vertical integration of the dual core industries-AI and semiconductors. ASE's expansion project, which includes the construction of an eight-story building above ground and two basement levels, with a total floor area of 60,000 square meters, is a concrete outcome of this strategic implementation. The launch of the new plant aligns closely with the government's "Greater Southern New Silicon Valley" strategic positioning and further solidifies Kaohsiung's status as a core hub within the semiconductor S Corridor.
During his remarks, Hung Sung-Ching, Senior Vice President of ASE Kaohsiung, stated that ASE has accumulated 40 years of industry experience. Facing advancements in advanced packaging and final testing technologies, the company will fully adopt smart manufacturing and automated systems to optimize production processes and enhance process performance. In addition, the K18B plant will incorporate green energy and sustainability into its core operational principles, strengthening energy-saving efficiency from building design to facility systems. It aims to obtain Gold-level Green Building certification, demonstrating its commitment to low-carbon, high-efficiency, and environmentally symbiotic development.
ASE has long been deeply involved in Kaohsiung's packaging and testing industry chain and has earned recognition from across the sector. The company recently received the "2024 Energy Conservation Benchmark Award - Gold Award" from the Ministry of Economic Affairs, reaffirming its excellence in energy conservation, carbon reduction, and promoting a green supply chain. According to the MOEA, ASE not only focuses on its core business but also actively collaborates with upstream and downstream partners to build a green supply network, making it one of Taiwan's key drivers toward net-zero transformation.
In fact, ASE's latest expansion reflects several important industry trends: First, a surge in global demand for AI chip applications is driving the expansion of high-end packaging and testing capacity; second, factory planning incorporates smart systems and high-efficiency energy resource management equipment to reduce operational energy consumption and carbon emissions; third, strengthening collaboration with local industry chains improves supply flexibility and response speed; fourth, balancing manufacturing performance with sustainable operations to establish a benchmark for next-generation low-carbon factories; fifth, aligning with policy goals and market needs demonstrates corporate resilience in moving in tandem with public policy.
The K18B plant will continue to strengthen integration of internal production lines within the park and incorporate green energy systems such as solar panels. It will also begin a comprehensive micro-vibration building assessment to create an energy-efficient, high-performance green factory. This not only aligns with Taiwan's 2050 net-zero carbon emissions goal but also establishes a practical site for low-carbon transformation within the semiconductor industry. The BIP noted that it hopes similar investment projects will gradually deepen the complete semiconductor S Corridor industry chain in southern Taiwan and amplify industrial clustering effects.


Spokesman: Mr. Liu Chi-Chuan (Deputy Director General, BIP)
Contact Number: 886-7-3613349, 0911363680
Email: [email protected]

Contact Person: Chou, I-Hsin (Senior Specialist of BIP)
Contact Number: 886-7-361-1212 ext. 236
Email: [email protected]