The rapid growth of artificial intelligence (AI) and high-performance computing (HPC) is driving demand for advanced packaging technologies. Key players, including ASE Technology Holding, Sigurd Microelectronics, and ChipMOS, are aggressively expanding their advanced packaging capabilities. Meanwhile, Samsung Electronics and ASE Semiconductor are focusing on R&D and strategic partnerships to enhance next-generation packaging solutions, solidifying their positions as industry leaders.
ASE, Sigurd, and ChipMOS Compete in Advanced Packaging Market
As competition in the advanced packaging sector intensifies, industry reports indicate that ASE Technology Holding, Sigurd Microelectronics, and ChipMOS are actively investing in capacity expansion to secure market share.
ASE Acquires Sumitomo Chemical’s Taiwan Subsidiary for Expansion
Recently, ASE Semiconductor, a subsidiary of ASE Technology Holding, announced the acquisition of 100% equity in Sumitomo Chemical's subsidiary, Sumipex Technology, for approximately NT$356 million ($11.4 million USD). This acquisition will provide land-use rights in Taiwan’s Nanzih Technology Industrial Park, where ASE plans to expand advanced packaging production.
ASE is currently accelerating its advanced packaging initiatives in Kaohsiung, with plans to invest $200 million USD in its first large-format 600×600 mm Fan-Out Panel-Level Packaging (FOPLP) production line. The installation of equipment is scheduled for Q2 2025, followed by a pilot production run in Q3. Additionally, ASE’s Kaohsiung K28 facility, which broke ground in October 2024, is expected to be operational by 2026, further expanding Chip-on-Wafer-on-Substrate (CoWoS) packaging capacity.
ASE Secures Major Orders from NVIDIA & AMD
To meet surging demand, ASE and its subsidiary, SPIL (Siliconware Precision Industries), have secured major orders from NVIDIA and AMD for HPC packaging and testing. ASE is ramping up CoWoS production across multiple sites, including its Kaohsiung, Taichung (Central Taiwan Science Park), and Huwei facilities. The Kaohsiung K18 plant, slated for completion in 2026, will focus on AI chip packaging, while SPIL’s Taichung and Huwei sites are accelerating new CoWoS production lines for 2025 mass production.
Sigurd Targets AI Chip Market
Sigurd Microelectronics, along with its subsidiary Taiwan Startek, is expanding its advanced packaging services for leading global chipmakers, including NVIDIA, AMD, Broadcom, and Marvell. Sigurd is also receiving significant orders from Chinese IC design firms, indicating strong growth prospects in the AI sector. More developments from Sigurd's expansion efforts are expected in H2 2025.
ChipMOS Strengthens Partnerships for AI Testing
ChipMOS is reinforcing its advanced packaging and testing capabilities, particularly for TSMC’s outsourced testing services. The company has secured AI chip testing orders from a leading US-based networking semiconductor company, with volume ramp-up expected in 2025. Additionally, ChipMOS is optimizing its Taiwan-based facilities to align with evolving customer needs.
ASE and Samsung Drive Advanced Packaging Innovations
Beyond capacity expansion, ASE and Samsung Electronics are pioneering next-generation packaging technologies.
ASE Integrates AI-Driven Sensing for Process Optimization
ASE Semiconductor is collaborating with Ainos, a leader in AI-driven digital olfaction technology, to enhance process efficiency and environmental monitoring in semiconductor packaging plants. Ainos’ proprietary AINose technology, initially developed for medical diagnostics, leverages AI-powered sensor arrays to detect volatile organic compounds (VOCs) in the manufacturing environment.
By integrating AINose, ASE aims to improve process stability, extend equipment lifespan, and optimize overall manufacturing conditions. This collaboration reflects ASE’s commitment to innovation-driven process enhancements.
Samsung Develops Glass Interposers for Future Packaging
Samsung Electronics is advancing its next-generation packaging material—glass interposers, which are expected to replace costly silicon interposers and significantly boost chip performance. This technology is scheduled for mass production in 2027.
Samsung's Device Solutions (DS) division is actively collaborating with Australian materials supplier Chemtronics and South Korean equipment manufacturer Philoptics to explore Corning glass-based interposer solutions. Additionally, Samsung Electro-Mechanics, a subsidiary of Samsung Electronics, is independently developing glass-based substrates, fostering internal competition to drive breakthroughs in semiconductor packaging.
Conclusion
As AI and HPC applications continue to grow, advanced packaging has become a critical battleground for semiconductor manufacturers. ASE, Sigurd, and ChipMOS are aggressively expanding their production capacity, while Samsung Electronics and ASE Semiconductor are driving technological innovation in the field. With major players ramping up investments, the advanced packaging industry is poised for rapid transformation, shaping the next generation of high-performance computing.
