Hello my dears,
Following Juan's visit to ASE, the share continues to show good momentum.
I would like to praise Juan once again. And show you in the follow-up report why he chose this particular company. And why Juan recognized the potential here even before planning the trip to Taiwan.
Race for semiconductor packaging and testing capacity intensifies as ASE, Samsung and Amkor announce new moves
(this article quotes information from Bloomberg )
Since April 2026, the global semiconductor packaging and test sector has seen a wave of significant developments. ASE has launched its largest manufacturing construction program to date, with six new facilities scheduled to begin construction worldwide this year. Meanwhile, Samsung Electronics plans to invest US$4 billion in a new packaging and test facility in Vietnam, while Amkor is simultaneously accelerating its capacity expansion in the country.
ASE expands production worldwide
On April 10, 2026, ASE Technology Holding held a groundbreaking ceremony for a new facility at Renwu Industrial Park in Kaohsiung. With a total investment of over TWD 108.3 billion, the plant will focus on advanced semiconductor test services covering applications such as AI, HPC, 5G communications and automotive electronics. The first phase is scheduled to be completed by April 2027, followed by phase two in October of the same year. The facility is expected to achieve an annual production value of up to TWD 177.3 billion.
This project is just one part of ASE's wider global expansion. According to CEO Tien Wu, 2026 marks the company's most aggressive year in manufacturing construction, with six new plants coming online globally - a record high. In addition to the Kaohsiung site, expansion projects span the United States, Malaysia, Japan and Germany to address the growth in AI-driven semiconductor demand.
In terms of capital expenditure, ASE initially planned US$7 billion for 2026, but indicated a possible upward revision due to strong market demand, with details to be announced in the upcoming earnings call.
On the technology front, Wu pointed out that Co-Packaged Optics (CPO) is expected to enter mass production in 2026. To support the rapid expansion, ASE has also launched a new round of hiring, targeting 3,000 technical recruits in 2026 and another 1,000 in 2027 to strengthen R&D and capacity expansion.
Samsung and Amkor focus on Vietnam
According to Bloomberg on April 10, Samsung Electronics plans to invest USD 4 billion to build a semiconductor packaging and testing plant in Thai Nguyen province in northern Vietnam, with an initial phase of USD 2 billion. This would be Samsung's largest single investment in this segment since entering Vietnam in 2008. Vietnam's Ministry of Finance has confirmed ongoing talks with Samsung regarding investment cooperation in the semiconductor sector.
The new facility will be located near Samsung's existing smartphone manufacturing base and will leverage the region's established supply chain and infrastructure to meet the growing global demand for chip packaging and testing driven by data centers and AI devices.
Industry observers note that Samsung's move aligns with ongoing investments by TSMC and Intel in advanced packaging, solidifying its position in the overall semiconductor value chain. Vietnam, benefiting from competitive labor costs, strategic location and an established industry base, is increasingly becoming a major destination for the relocation of packaging and test capacity.
Meanwhile, Amkor is accelerating the expansion of its operations in Vietnam. Since 2021, the company has invested a total of USD 1.6 billion to build advanced packaging facilities at Yen Phong 2C Industrial Park in Bac Ninh province. This site represents Amkor's largest advanced packaging base in the world, focusing on system-in-package (SiP) and HBM storage integration, offering turnkey solutions from design to electrical testing.
According to Amkor's February 2026 financial report, the company plans capital expenditures of USD 2.5-3.0 billion for the year, with a focus on expanded packaging capacity expansion, including operations in Vietnam. Key end markets include HPC, AI, automotive electronics, IoT and mobile communications.
Vietnam has been positioned by Amkor as a "growth engine for the next decade", aiming to diversify risks in the supply chain. The sites in Vietnam have a modular production layout with 25% flexibility in reserved capacity, allowing for rapid reconfiguration of equipment in response to policy or market changes.
Competition in the semiconductor packaging and testing sector is increasing
Packaging and testing of semiconductors are the back-end processes of chip manufacturing and comprise two main phases: Packaging and Testing. Packaging includes processes such as dicing, chip termination, wire bonding or flip-chip, as well as forms that provide physical protection, electrical connections, thermal management and standardized interfaces for chips. Testing includes wafer probing (CP) and final testing (FT), where specialized equipment is used to identify defective or underperforming chips to ensure product quality and reliability before shipment.
As the effect of Moore's Law diminishes, advanced packaging has become a critical way to improve chip performance, while the value proposition of testing continues to increase in parallel with increasing chip complexity. Since the beginning of 2026, numerous companies worldwide have announced new or expanded packaging and test facilities.
