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ASE to Expand Production Capacity for The Rasing Demands of Wearables

By Korbin Lan
Published: Apr 06,2015

TAIPEI, Taiwan - According to Taiwan media reported, Advanced Semiconductor Engineering Inc. (ASE) decided to expand its System in Package (SiP) production capacity of Kaohsiung and Chungli plants to cope with the rapid growth needs of wearable devices.

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Reported that, in addition to Apple, the international sports brands are also targeting ASE to cooperate on developing smart bracelets and smart watches, scheduled to launch in the second half of this year. The ASE Kaohsiung and Chungli are planning to increase its production capacity of SiP.

In response to expansion, ASE Board of Directors has decided to apply for overseas private capital to NT $ 16 billion. ASE is currently not announced capital spending this year, but analysts predict that the capital expenditure of ASE this year will be revised to US $ 0.9 billion from US$ 0.7 billion.

ASE said that system-in-package is the strongest momentum of ICs packaging in next three to five years. ASE have the integration technology of chios packageing and system module, while providing flip-chip package and wafer-level integration packaging technology of micro-sensors, is the most competitive comoany in ICs packaging industry.

ASE estimated that the revenue of system-in-package this year will account for 20% of annual group revenue. However, with the massive growth of orders from wearable devices, the proportion of SiP will increase to 30%.

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