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ISE Labs Investment Secures the Establishment of New Site for Semiconductor Packaging and Test in Mexico

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ISE Labs, a subsidiary of ASE Technology Holding Company, has acquired land in Tonalá, Guadalajara Metropolitan Area, to establish a new semiconductor packaging and test facility. The project aims to expand ASE's global footprint in North America and is expected to create over 500 jobs in its first operational year. Located in Jalisco, which represents 70% of Mexico's semiconductor market, the facility will focus on semiconductor engineering, design, and manufacturing scale-up. The state government will facilitate partnerships with educational institutions and chambers of commerce to ensure recruitment of specialized talent.

ISE Labs, una filiale di ASE Technology Holding Company, ha acquisito un terreno a Tonalá, nell'area metropolitana di Guadalajara, per stabilire un nuovo stabilimento per il confezionamento e il collaudo di semiconduttori. Il progetto mira a espandere la presenza globale di ASE in Nord America e si prevede che creerà oltre 500 posti di lavoro nel suo primo anno di operatività. Situato a Jalisco, che rappresenta il 70% del mercato dei semiconduttori in Messico, lo stabilimento si concentrerà ingegneria, progettazione e scalabilità della produzione di semiconduttori. Il governo statale favorirà partnership con istituzioni educative e camere di commercio per garantire il reclutamento di talenti specializzati.

ISE Labs, una subsidiaria de ASE Technology Holding Company, ha adquirido terrenos en Tonalá, en el Área Metropolitana de Guadalajara, para establecer una nueva instalación de empaquetado y prueba de semiconductores. El proyecto tiene como objetivo expandir la huella global de ASE en América del Norte y se espera que cree más de 500 empleos en su primer año de operación. Ubicada en Jalisco, que representa el 70% del mercado de semiconductores de México, la instalación se enfocará en la ingeniería, el diseño y la escalabilidad de la fabricación de semiconductores. El gobierno estatal facilitará asociaciones con instituciones educativas y cámaras de comercio para asegurar la contratación de talento especializado.

ISE Labs는 ASE Technology Holding Company의 자회사로서 과달라하라 대도시 지역의 토날라에 반도체 패키징 및 테스트 시설을 설립하기 위해 토지를 인수하였습니다. 이 프로젝트는 ASE의 북미 글로벌 입지를 확장하고 첫 해 운영에 500개 이상의 일자리를 창출할 것으로 예상됩니다. 멕시코 반도체 시장의 70%를 차지하는 하리스코에 위치한 이 시설은 반도체 엔지니어링, 설계 및 제조 규모 확대에 중점을 둘 것입니다. 주 정부는 전문 인재의 채용을 보장하기 위해 교육 기관 및 상공회의소와의 파트너십을 촉진할 예정입니다.

ISE Labs, une filiale de ASE Technology Holding Company, a acquis un terrain à Tonalá, dans la zone métropolitaine de Guadalajara, pour établir une nouvelle installation d'emballage et de test de semi-conducteurs. Le projet vise à étendre l'empreinte mondiale d'ASE en Amérique du Nord et devrait créer plus de 500 emplois lors de sa première année d'exploitation. Située à Jalisco, qui représente 70% du marché des semi-conducteurs au Mexique, l'installation se concentrera sur l'ingénierie des semi-conducteurs, la conception et l'augmentation de la capacité de fabrication. Le gouvernement de l'État facilitera les partenariats avec des établissements d'enseignement et des chambres de commerce pour garantir le recrutement de talents spécialisés.

ISE Labs, eine Tochtergesellschaft der ASE Technology Holding Company, hat Land in Tonalá, im Großraum Guadalajara, erworben, um eine neue Halbleiterverpackungs- und Testeinrichtung zu errichten. Das Projekt zielt darauf ab, die globale Präsenz von ASE in Nordamerika zu erweitern und soll im ersten Betriebsjahr über 500 Arbeitsplätze schaffen. Die Einrichtung befindet sich in Jalisco, das 70% des mexikanischen Halbleitermarktes ausmacht, und wird sich auf Halbleitertechnik, Design und die Skalierung der Produktion konzentrieren. Die Landesregierung wird Partnerschaften mit Bildungseinrichtungen und Handelskammern fördern, um die Rekrutierung von spezialisierten Talenten sicherzustellen.

Positive
  • Strategic expansion into North American market through new facility in Mexico
  • Expected creation of 500+ jobs in first year of operation
  • Located in region controlling 70% of Mexico's semiconductor market
  • Government support for workforce development and recruitment
Negative
  • None.

Insights

This land acquisition in Mexico marks a significant strategic expansion for ASE Technology Holding Company into North America's semiconductor market. The planned facility in Guadalajara positions ASE to capitalize on the growing semiconductor demand driven by nearshoring trends and the CHIPS Act. The location is particularly strategic as Jalisco represents 70% of Mexico's semiconductor market.

The investment will establish the first OSAT (Outsourced Semiconductor Assembly & Test) facility in Latin America, creating over 500 high-skilled jobs in its first year. This expansion aligns with the broader industry shift toward regionalizing semiconductor supply chains and reducing dependence on Asia. The partnership with local educational institutions and government support for workforce development significantly reduces operational risks.

The establishment of an OSAT facility in Mexico represents a important development in North American semiconductor infrastructure. This move strengthens the regional semiconductor supply chain by providing essential backend services closer to U.S. manufacturers. The facility's proximity to major tech hubs and automotive manufacturing centers in North America offers significant competitive advantages in terms of reduced logistics costs and faster time-to-market.

The selection of Guadalajara's established tech ecosystem, with its existing semiconductor expertise and educational infrastructure, will accelerate facility ramp-up. This expansion will help address the critical bottleneck in global semiconductor packaging and testing capacity, particularly for advanced chips used in emerging technologies.

Guadalajara plan expands ASE’s global footprint, increases presence in North America

FREMONT, Calif.--(BUSINESS WIRE)-- ISE Labs, Inc., a leading provider of semiconductor engineering services, today announced the acquisition of a significant parcel of land within Axis 2 Industrial Park, located in Tonalá, a city and municipality within the Guadalajara Metropolitan Area. This strategic land purchase demonstrates the company’s long-term commitment to the state of Jalisco and establishes a footprint for future expansion.

Left to Right: Ou Li (ASE), Dina Grijalva (Jalisco Tech Hub Act), Ingu Yin Chang (ASE), Governor elect Pablo Lemus (State of Jalisco), Governor Enrique Alfaro (State of Jalisco), Jeff Thompson (ISE Labs), Andrew Lee (USI), Patricia MacLeod (ASE) (Photo: Business Wire)

Left to Right: Ou Li (ASE), Dina Grijalva (Jalisco Tech Hub Act), Ingu Yin Chang (ASE), Governor elect Pablo Lemus (State of Jalisco), Governor Enrique Alfaro (State of Jalisco), Jeff Thompson (ISE Labs), Andrew Lee (USI), Patricia MacLeod (ASE) (Photo: Business Wire)

ISE Labs focuses on semiconductor engineering, design and manufacturing scale-up of leading-edge semiconductor devices within North America and is a wholly owned subsidiary of ASE Technology Holding Company, the largest semiconductor assembly and test provider in the world. ASE plans for this project in Jalisco to include services for the packaging and testing of semiconductor chips, and believes it provides a unique opportunity for ASE to enlarge its global footprint and increase ASE’s presence in North America.

The future establishment of a semiconductor packaging and test facility in Jalisco paves the way for the recruitment of skilled engineers and technicians, and close collaboration with educational institutions on workforce development initiatives. The new facility is expected to create more than five hundred new jobs in its first year of operation.

To ensure the recruitment of the highly specialized talent required to operate in Jalisco, the Jalisco State Ministry of Economic Development (SEDECO), the Jalisco State Ministry of Innovation, Science and Technology (SICyT) and the Jalisco State Ministry of Education will facilitate a strong link between ISE Labs and the region's educational institutions and chambers of commerce.

Jalisco currently accounts for 70% of the semiconductor market in Mexico. The industry generates significant value in the economy due to the high paying jobs required to successfully run operations as well as the continued innovation across the state’s technology community.

“We are excited to strengthen ISE’s partnership with the state of Jalisco by securing future business expansion through our purchase of land in Tonalá. This proactive investment demonstrates ISE’s commitment to innovation, growth, and its valued relationship with the state of Jalisco,” said Kenneth Hsiang, Chief Executive Officer, ISE Labs. “It also provides business flexibility to expand as demand for semiconductor packaging and test continues to grow throughout North America.”

“This administration has successfully transformed our semiconductor and advanced electronics manufacturing services industry into a new model focused on technology and innovation,” said Enrique Alfaro Ramírez, Governor of the State of Jalisco. “ASE is a leading global company that represents the future and it has selected Guadalajara, Jalisco for this strategic investment that will bring important projects to our state. It also establishes Jalisco as the first state in Mexico, and indeed Latin America, that will offer OSAT services to major semiconductor companies from across North America.”

Terms of the acquisition have not been disclosed.

GLOSSARY

OSAT: Outsourced Semiconductor Assembly & Test

About ISE Labs, Inc.

Established in 1983, ISE Labs has a wealth of experience and expertise to serve the semiconductor community. The company’s broad offering of engineering services and products includes test engineering support, production test services, test program development, test interface and reliability test hardware, ESD, burn-in, environmental testing, mechanical testing, and failure analysis.

ISE Labs is a subsidiary of ASE, Inc. The world leader in advanced semiconductor packaging and test services, ASE offers a wide portfolio of technology and solutions for IC test program design, front-end engineering test, wafer probe, wafer bump, substrate design and supply, wafer level packaging, flip chip, system-in-package, and other manufacturing services.

About ASE, Inc.

Advanced Semiconductor Engineering, Inc. (ASE), a member of ASE Technology Holding Co., Ltd. (NYSE: ASX, TAIEX: 3711) is the leading global provider of semiconductor manufacturing services in packaging and test. Alongside a broad portfolio of established packaging and test technologies, ASE is also delivering innovative VIPack™, advanced packaging, and system-in-package solutions to meet growth momentum across a broad range of end markets, including AI, automotive, 5G, high-performance computing, and more. To learn about our advances in SiP, fanout, MEMS and sensor, flip chip, and 2.5D, 3D and TSV technologies, all ultimately geared towards applications to improve lifestyle and efficiency, please visit: aseglobal.com, or follow us on LinkedIn & X: @aseglobal

Press Contacts:

ASE/ISE: Patricia MacLeod +1.408.314.9740 patricia.macleod@aseus.com

Jalisco State Government: Adriana Reyes Leyva +523314097234 adriana.reyes@jalisco.gob.mx

Source: Advanced Semiconductor Engineering, Inc.

FAQ

What is ISE Labs planning to build in Guadalajara, Mexico?

ISE Labs is planning to establish a new semiconductor packaging and test facility in Tonalá, Guadalajara Metropolitan Area, focusing on semiconductor engineering, design, and manufacturing scale-up.

How many jobs will ISE Labs create in Guadalajara?

The new facility is expected to create more than 500 new jobs in its first year of operation.

What percentage of Mexico's semiconductor market does Jalisco control?

Jalisco currently accounts for 70% of the semiconductor market in Mexico.

Where is ISE Labs' new facility located in Mexico?

The new facility will be located within Axis 2 Industrial Park in Tonalá, a city within the Guadalajara Metropolitan Area in Jalisco state.

ASE Technology Holding Co., Ltd.

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