With the rapid development of the AI and high-performance computing (HPC) markets, the importance of advanced packaging technology has become increasingly prominent. Currently, major packaging and testing companies such as ASE Technology Holding, Sigurd, and Ardentec are aggressively competing for a share of the advanced packaging market. Meanwhile, Samsung Electronics and ASE Inc. are advancing the development of advanced packaging technologies through research, development, and expanded collaborations, making them key drivers of industry growth.
ASE Technology Holding, Sigurd, and Ardentec Compete for the Advanced Packaging Market
The advanced packaging market is highly competitive. According to multiple supply chain sources, ASE Technology Holding, Sigurd, and Ardentec are all making significant efforts to expand their market share.
Recently, ASE Inc., a subsidiary of ASE Technology Holding, announced its acquisition of 100% equity in Sumitomo Chemical's subsidiary, Sumitomo Bakelite Technology, with a total estimated investment of approximately NT$356 million.
The primary objective of this investment by ASE Inc. is to secure the land use rights for Sumitomo Bakelite Technology's factory site in the Nanzih District of Kaohsiung, Taiwan. Given ASE Inc.'s previously disclosed expansion plans, market analysts predict that the company will increase its advanced packaging production capacity at this location.
ASE is actively expanding its advanced packaging facilities in Kaohsiung. CEO Tien Wu previously revealed that ASE Technology Holding has invested $200 million to establish its first 600x600 large-sized fan-out panel-level packaging (FOPLP) production line in Kaohsiung. The equipment is expected to be installed in the second quarter of this year, with trial production beginning in the third quarter. Additionally, in early October 2024, ASE Inc. held a groundbreaking ceremony for its new K28 factory in Kaohsiung, which is expected to be completed by 2026. The factory aims to expand CoWoS advanced packaging capacity.
ASE Technology Holding and its subsidiary, Siliconware Precision Industries (SPIL), have secured major packaging and testing orders from NVIDIA and AMD for high-performance computing (HPC) applications. To meet growing market demand, ASE Technology Holding is actively expanding its advanced packaging capacity across its facilities in Kaohsiung, Central Taiwan Science Park, and Huwei. Among these, the Kaohsiung K18 factory is expected to be completed and operational by 2026, focusing on AI chip and HPC applications. Furthermore, SPIL's Central Taiwan Science Park and Huwei facilities are accelerating the construction of new CoW production lines, with mass production at the Huwei facility expected to begin in 2025.
Meanwhile, Sigurd and its subsidiary, TeraPower Technology, are rapidly expanding their presence in the advanced packaging market, targeting global IC design leaders such as NVIDIA, AMD, Broadcom, and Marvell. Sigurd has already received numerous orders from Chinese IC design companies and has established a dedicated department for order review and analysis. Further developments from Sigurd are anticipated in the second half of 2025.
Ardentec is also actively expanding its presence in the advanced packaging market, particularly by securing outsourced testing orders from TSMC. Reports indicate that Ardentec has obtained AI-related testing orders from a major U.S. networking chip manufacturer, with volume production expected to ramp up by 2025. Additionally, Ardentec plans to optimize its Taiwan facility operations to better align with customer needs.
Samsung Electronics and ASE Inc. Advance Upgrades in Advanced Packaging Technology
The competition in the advanced packaging market is intense, and the development of advanced packaging technologies is accelerating. According to recent foreign media reports, ASE Inc. has signed a memorandum of understanding with AI-driven odor digitization company Ainos to integrate Ainos' patented AINose technology into semiconductor packaging and testing facilities. This collaboration aims to enhance process efficiency and environmental safety.
Public information indicates that Ainos' AINose technology is an AI-driven odor digitization technology initially developed for medical diagnostics. It uses an advanced sensor array to detect and analyze volatile organic compounds (VOCs) in the air and employs AI algorithms to convert them into digital signals, enabling precise odor perception.
In semiconductor manufacturing, fluctuations in the concentration and composition of VOCs can significantly impact process stability, equipment lifespan, and environmental conditions. By integrating AINose technology, ASE Semiconductor will be able to monitor subtle changes in these gases in real time, optimizing manufacturing processes.
Additionally, Samsung Electronics is developing a next-generation packaging material known as the "glass interposer." This technology is expected to enter mass production by 2027 and is designed to replace the currently dominant yet costly silicon interposers, significantly improving chip performance and production efficiency.
According to reports, Samsung Electronics' Device Solutions (DS) division has recently launched the development of the glass interposer and has received a joint proposal from Australian materials supplier Chemtronics and South Korean equipment manufacturer Philoptics, recommending the use of Corning glass for its production. Samsung is currently assessing the feasibility of outsourcing production to these companies to accelerate the commercialization of glass interposers.
Meanwhile, Samsung Electro-Mechanics, a subsidiary of Samsung Electronics, is also actively advancing the development of glass substrates (also known as glass-based substrates) and plans to commence mass production by 2027. These two parallel research projects have fostered healthy internal competition, which is expected to significantly enhance semiconductor production efficiency and innovation.