DOULIOU CITY, Taiwan—Siliconware Precision Industries Co. known as SPIL, broke ground yesterday on a new NT$100 billion (U.S.$3.1 billion) chip-packaging plant in Douliou City, Yunlin County, targeting first-phase operations in 2028.

The facility is designed to expand capacity for chip-on-wafer-on-substrate, or CoWoS, packaging—a process that integrates multiple components into high-performance AI chips. Supply of CoWoS capacity has lagged demand as AI hardware spending has surged.

SPIL operates as a major subsidiary of ASE Technology Holding Co. the world's largest provider of chip packaging and testing services. Both companies have won additional business as Taiwan Semiconductor Manufacturing Co. (TSMC) has struggled to keep pace with CoWoS demand during the AI boom.

SPIL Vice Chairman Chang Yen-chun said the plant represents a growth engine for the company and positions SPIL to hold an indispensable role in global AI supply chains.

The Douliou plant is SPIL's second advanced packaging facility in Yunlin County, following the September 2025 launch of its first Yunlin plant in Huwei Township.

Over the past two years, SPIL has invested roughly NT$200 billion in new facilities across Taichung, Changhua County, Yunlin County, Hsinchu City and Tainan, creating 8,000 jobs. The Douliou plant is expected to add 1,300 jobs at initial production, rising to 2,200 at full capacity.

Minister of Economic Affairs Kung Ming-hsin said the investment strengthens SPIL's advanced packaging capability, improves production efficiency and yield, and helps secure Taiwan's position in global semiconductor supply chains.

To fund the expansion and raw material purchases, SPIL plans to raise NT$16.19 billion by offering 810 million new shares, all of which parent company ASE has agreed to subscribe to, according to filings with the Taiwan Stock Exchange.

Nvidia has reserved significant CoWoS capacity, and TSMC has outsourced portions of its CoWoS process to third-party providers including ASE and Amkor. ASE Technology expects its advanced packaging sales to double in 2026.