Taiwan's top backend house Advanced Semiconductor Engineering (ASE) has decided to purchase a new factory building in Kaohsiung, southern Taiwan to provide more space for warehousing chemical materials and flexible capacity support for flip-chip packaging and high-end testing operations, according to ASE Technology Holding CFO Joseph Tung.

Tung said the new building, valued at NTY$2.326 billion (US$74.67 million) and located adjacent to its major manufacturing complex in Nanzih Export Processing Zone, will help ASE optimize its capacity allocation to strengthen the firm's overall development.

ASE and its affiliated Siliconware Precision Industries (APIL), long maintaining close partnerships with leading chipmakers Qualcomm, Huawei HiSilicon and MediaTek, are expected to continue landing large backend orders for 5G chip solutions from the chip vendors, as their advanced SiP, OTA (over the air) testing and SLT (system level testing) technologies are badly needed to support high heterogeneous integration of 5G chips, according to industry sources.

The sources said the economies of scale, SiP patents, strong R&D momentum, and vertical supply integration of materials, substrates and EMS will enable ASE Technology - the parent cpmpany of ASE and SPIL - to firmly sustain its leaderships in the development of advanced backend technologies and services.

ASE Technology saw July consolidated revenues rise 15.22% sequentially to the year's monthly high of NT$36.37 billion (US$1.157 billion), and its revenues for the first seven months of the year shot up 127% on year to NT$215.98 billion.

Industry sources estimated the group's third-quarter revenues to see a sequential expansion of nearly 20%. Its EMS business is expected to grow 50% sequentially in the third quarter as Apple has entered the season for robust shipment pull-in. And its IC packaging and testing business for the quarter is also likely to expand by 15-18% on quarter, given that it has garnered big 5G AiP (antenna in package) and mmWave testing orders from major chipmakers, as well as chips packaging orders for smartphones, notebooks, IoT devices, and network equipment from Huawei.

By: DocMemory
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