CEO Tien Wu has stressed the importance of collaborating with suppliers to address current production bottlenecks, particularly the shortage of machines needed for this new technology.

As part of this collaboration, ASE is working with suppliers to develop custom machinery that can accommodate the larger square substrates, as existing equipment is inadequate.

This investment is part of ASE's broader capital spending plan for 2025, which is projected to exceed $1.9 billion, highlighting the company's commitment to innovation in chip technology.

To facilitate this initiative, ASE plans to establish a small-scale test production line in Kaohsiung, Taiwan, specifically designed for processing 600mm by 600mm square substrates.

The company is targeting the establishment of the test production line in 2025 at its R&D hub, with the first customer samples of products using square substrates expected to be delivered by 2026.

The transition to square substrates is promising, as they can offer up to five times more usable area than traditional 300-mm round wafers, enabling the assembly of more multi-chiplet AI processors.

ASE Technology Holding is making a significant investment of $200 million to develop next-generation chip packaging technology that utilizes square substrates, aiming to enhance AI computing performance.

Overall, ASE's move towards square substrates could not only enhance their product offerings but also set a new standard in the industry for advanced chip packaging.

If successful, this initiative could position ASE ahead of its competitors in the advanced packaging sector by several years, potentially transforming the market landscape.

This timeline indicates ASE's strategic approach to rapidly bring innovative products to market, aligning with the growing demand for advanced AI computing solutions.

It's important to note that the initial $200 million investment is focused on machinery for the small-scale production line and does not encompass broader research and development costs.