ASE, the world’s largest semiconductor OSAT (Encapsulation and Inspection) company, has signed a provisional agreement to acquire a site of approximately 159,899 square meters from Kitakyushu City for 3.4 billion yen.
🟦ASE acquires land in Kitakyushu City for 3.4 billion yen and considers expanding production capacity
ASE has signed a preliminary contract to acquire a site of approximately 159,899 square meters in Wakamatsu-ku, Kitakyushu City for 3.4 billion yen. The land to be acquired by ASE is city-owned land located in an “academic research city” where universities such as the Kyushu Institute of Technology are concentrated. The acquisition by ASE’s Japan subsidiary is intended to expand production capacity to meet future semiconductor demand. However, the specific construction schedule of the plant and the items to be produced have not been disclosed.
🟦 Geopolitical risks in the semiconductor industry and diversification of production bases
ASE’s move is in response to heightened geopolitical risks, such as the US-China confrontation. Mr./Ms. Kureta, COO of ASE, has made it clear that the company will work to diversify its production bases overseas, and Japan, the United States, and Mexico were listed as candidate locations. In particular, we are also looking at the development of advanced packaging for artificial intelligence (AI) semiconductors.
🟦Summary
ASE’s acquisition of land in Kitakyushu City and consideration of expanding production capacity may contribute significantly to strengthening the semiconductor industry in the Kyushu region.
Kitakyushu City is home to about 100 semiconductor-related companies, including those affiliated with Toshiba’s Kitakyushu plant, which closed in 2012. The presence of these companies will be an advantage for new semiconductor-related companies to enter the market.
