Wu Tien-yu: Prudently evaluate US expansion, overseas investment must be economically viable

KAOHSIUNG, Taiwan (CNA) -- Regarding the progress of ASE Technology Holding's expansion in Arizona, USA, COO Wu Tien-yu stated today that ASE Technology Holding will discuss with clients and only export its model once projects in Taiwan achieve certain results and are ready, ensuring competitiveness and economic viability in both Taiwan and overseas. The US investment plan is proceeding, and will be prudently evaluated. Regarding TSMC signing a 10-year cooperation agreement with Amkor, Wu Tien-yu expressed optimism.

ASE Technology Holding held its shareholders' meeting in Kaohsiung this morning, and Wu Tien-yu spoke to the media afterwards.

Speaking about the progress of its US investments, Wu Tien-yu pointed out that ASE Technology Holding's investments in the US are ongoing. For example, it has already invested in two testing, R&D, and production facilities in California and is currently planning for a third and fourth. Additionally, in collaboration with Arizona, it is responding to the needs of US clients, and related plans are continuously progressing. As for which projects will be invested in, what capacity will be involved, and with whom to cooperate, these matters require careful evaluation.

Wu Tien-yu stated that the holding company utilizes high-efficiency automation in Taiwan to first achieve economic benefits by integrating packaging and testing. Once it has a mature grasp of products, machinery, human resources, and software/hardware, it can then transfer this model to locations outside of Taiwan. He cited the holding company's automated production line in Malaysia as a good example, and that cooperation and services in the US should be based on the same thinking.

Wu Tien-yu emphasized that the holding company should not rush into overseas expansion before it is ready, as it would not be economically viable. ASE Technology Holding discusses with clients, and once projects in Taiwan achieve certain results, the solutions can be exported overseas, allowing both Taiwan and overseas operations to be competitive. This is a key point of discussion between the holding company and its clients.

Looking ahead at capital expenditures, Wu Tien-yu mentioned that ASE Technology Holding's annual capital expenditure has historically been around US$2 billion. In 2025, ASE Technology Holding plans to invest US$5.3 billion, and has currently raised its capital expenditure target for this year to US$8.5 billion, with expectations of further upward revision.

Regarding production capacity expansion in Taiwan, Wu Tien-yu indicated that ASE Technology Holding itself has six new development sites this year, while its subsidiary, SPIL, has seven new development sites. Coupled with the acquisition of the former Innolux Southern Taiwan Science Park plant, there are a total of 15 new plant development plans this year. The group is fully expanding its production capacity to meet long-term demand from 2029 to 2030.

When asked about the progress of Fan-Out Panel Level Package (PLP) and CoWoS advanced packaging, as well as plans for the Renwu plant in Kaohsiung and the acquired Innolux Southern Taiwan Science Park plant, Wu Tien-yu stated that the automated production line for Fan-Out Panel Level Package is expected to begin mass production by the end of this year at the earliest. Subsequent derivative technologies are still in the early stages of development, and "we will take it one step at a time."

Regarding Amkor's previous announcement of a 10-year cooperation agreement with TSMC, Wu Tien-yu expressed optimism. However, he also stressed that core competitiveness is most important, and ASE Technology Holding's continuous expansion in the US, Taiwan, Malaysia, South Korea, the Philippines, and Japan is based on comprehensive considerations. (Edited by Pan Yi-ching) 0624

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