Business · Companies · 1 day ago
Taiwan’s semiconductor packaging and testing investment nears 5 trillion yen
Taiwan’s semiconductor industry is planning a major increase in spending on packaging and testing, steps that come after chips are made.
Six large companies that provide these services expect to invest about $19 billion this year.
ASE, the world’s largest group in this business, plans to spend more than $10.5 billion.
TSMC also expects to invest between $6 billion and $12.8 billion in packaging, testing and related areas.
Together, the companies’ spending on these later-stage processes could approach 1 trillion Taiwan dollars, or about 5 trillion yen.
Demand for artificial intelligence chips is driving the investment, as those chips and their packages grow larger and require more advanced processing.
Taiwan’s packaging and testing industry is expected to generate more than 900 billion Taiwan dollars in output, and no further developments are specified.
Six major semiconductor packaging and testing contractors are expected to invest about $19 billion this year.
Including TSMC’s planned spending, investment in Taiwan’s semiconductor back-end processes is expected to approach 1 trillion Taiwan dollars, or about 5 trillion yen.
ASE Holdings alone plans to invest more than $10.5 billion, making it the largest investor among the six contractors.
The investment boom is being driven mainly by rising demand for AI chips and larger semiconductor packages.
Taiwan’s semiconductor back-end industry is forecast to generate more than 900 billion Taiwan dollars in output.
- Who
- ASE Holdings, five other major outsourced semiconductor assembly and test firms, and TSMC.
- What
- They are planning large investments in semiconductor packaging, testing and related back-end processes.
- When
- In 2026.
- Where
- Taiwan and the global semiconductor packaging and testing industry.
- Why
- Rising AI demand and the growing size of AI chips and packages are increasing the importance of packaging and testing.
This story does not have two clearly opposing sides.
No direct quotes in the coverage so far.
Six major outsourced semiconductor assembly and test firms are expected to spend about $19 billion on capital investment.
TSMC is expected to invest $6 billion to $12.8 billion in packaging, testing, photomasks and related fields.
Combined investment in semiconductor back-end processes by the companies is expected to approach 1 trillion Taiwan dollars.
- Six major OSAT firms
- About $19 billion in expected 2026 capital investment
- ASE Holdings
- More than $10.5 billion in planned investment
- TSMC
- $6 billion–$12.8 billion in planned spending
- Taiwan back-end industry
- More than 900 billion Taiwan dollars in forecast output
- Combined back-end investment
- Nearly 1 trillion Taiwan dollars, or about 5 trillion yen
Sources
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