ASE Technology Holding, one of the world's largest semiconductor manufacturing service providers, recently acquired land in Jalisco, Mexico, where it plans to build an integrated circuit (IC) center. This strategic move is designed to strengthen ASE Group's global presence and meet the growing demand for semiconductor production and advanced packaging solutions in North America, while addressing the significant challenges facing the current supply chain.
Setting up a factory in Mexico can reduce the risks posed by long-distance supply chains, especially in the current context of supply chain disruptions due to geopolitical tensions and trade restrictions. The North American production center allows ASE to be closer to customers in the U.S., providing more stable supply chain solutions, shorter lead times, and improved logistics efficiency, especially for key industries such as automotive, consumer electronics, and the Internet of Things. Jalisco currently accounts for 70% of Mexico's semiconductor market, and the investment strengthens ASE's presence in North America and supports the region's growing demand for semiconductor manufacturing. This strategic layout will further strengthen Jalisco's position in the global semiconductor supply chain.
North America, especially the United States, has been actively encouraging semiconductor manufacturing to reshore itself. By establishing a presence in Jalisco, ASE aligns with its regional goal of strengthening its North American semiconductor capabilities and reducing its reliance on Asian suppliers. The investment also complements the pace of expansion in North America by companies such as TSMC, Intel, Samsung, and others.
Figure: ASE Technology deploys an IC center in Mexico
ASE IC's IC Center is expected to bring advanced manufacturing jobs and technology experience to Jalisco. Mexico's advantages in labor costs, skilled labor, and location with the U.S. market make it ideal for high-tech investments. The new facility may also attract suppliers and partners, which in turn will drive the local economy.
ASE focuses on advanced packaging, a key technology that plays an important role in modern semiconductor manufacturing. The new center in Jalisco is expected to support packaging technologies such as system-in-package (SiP) and 3D IC stacking, which are increasingly important in high-performance computing, automotive and AI applications.
ASE expands in Jalisco in line with its overall strategy of global diversification and resilience. Although ASE has a strong infrastructure in Taiwan and other Asian regions, the new plant in Mexico represents an important step in increasing its competitiveness in the Western market. This strategic placement could strengthen ASE Group's relationships with North American customers and provide a stronger alternative for companies seeking to diversify their supply chains.
ASE purchased land in Jalisco to establish an IC center, marking a significant advance in the global semiconductor industry. This move not only strengthens ASE in North America, but also highlights the industry trend of diversifying semiconductor production regions. By investing in Jalisco, ASE is contributing to the North American semiconductor ecosystem, supporting supply chain resilience and driving economic and technological growth in the region.
