SPIL said to take over TSMC group land in Erlin with investment seen topping NT$100 billion

Taiwan’s chip packaging supply chain is reshuffling after Taiwan Semiconductor Manufacturing Co. bought two AUO plants in Central Taiwan Science Park for NT$38.8 billion. Supply chain sources cited in the report said Siliconware Precision Industries Co. (SPIL), a unit of ASE Technology Holding, is expected to take over nearly 50 hectares of land in the Erlin section of the park that had been tied to TSMC group planning. If the full site is included, the project could be developed in phases with multiple advanced packaging and testing plants, and preliminary investment estimates point to more than NT$100 billion. ASE did not comment on the market talk. Even so, the company has already raised its 2026 advanced packaging and testing revenue target. The report also ties the move to stronger demand from AI chips and high-performance computing, which has pushed TSMC to expand CoWoS capacity and increased outsourced backend demand. SPIL already has production facilities coming online in Erlin. In June, the company disclosed that it had obtained land-use rights for 11.15 hectares in the park for future expansion. If the new project moves ahead, SPIL’s cumulative investment in Erlin could reach NT$200 billion, according to the report. Nvidia has also said it will work with SPIL to expand optical engine capacity for co-packaged optics, with output targeted to reach 15 times current levels by mid-2027 and double again before the end of 2028.