Facing talent shortage, Taiwanese chip test firm ASE boosts automation



By Sarah Wu

TAIPEI, Sept 28 (Reuters) - Taiwan's ASE Technology Holding Co Ltd 3711.TW , one of the world's largest semiconductor testing and packaging firms, said on Wednesday that it would build a more advanced smart factory, as the industry continues to grapple with a labour shortage.

The new factory in Kaohsiung, powered by U.S. chip designer Qualcomm Inc's QCOM.OQ Snapdragon system, will be the first in the world to deploy a "5G mmWave new radio-dual connectivity standalone" network to improve speed, stability and equipment efficiency, the company said, marking the latest advance in ASE's automation push.

Apple Inc AAPL.O supplier ASE, which began investing in automated factories in 2015, told Reuters it plans to build 10 smart factories this year, reaching a total of 37 smart factories in Taiwan by the end of the year.

"To counter the talent crunch and adapt to diverse customer requirements, ASE is accelerating its adoption of smart manufacturing technologies including automation," the company said in a statement.

The talent shortage in the semiconductor industry remains a top concern, executives from companies throughout the chip supply chain from design to manufacturing have told Reuters.

Chip companies in Taiwan have been rapidly expanding in recent years, spurred in part by a pandemic-induced surge in demand for chips, and face fierce competition from local and foreign companies recruiting from a shrinking pool of engineers.

Taiwan's government last year partnered with industry to establish specialised "chip schools" to boost engineering talent for the prized sector on the island, home to the world's largest contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd (TSMC) 2330.TW .

"We hope to lead by example and inspire more industry players to contribute to building a resilient global smart manufacturing and equipment cluster," ASE Chief Executive Tien Wu said in a statement.
Reporting by Sarah Wu; Editing by Jamie Freed

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.