Taiwan's ASE to build 2 chip plants in China

Citing ASE's US and European operations president Tien Wu, the report noted that the first facility in Hangzhou should be in production by early 2002.

A second, smaller-scale advanced IC-assembly and packaging facility would be located in Shanghai, Wu added without revealing a time frame. ASE is said to have other IC-packaging and/or test plants in Taiwan, South Korea, Malaysia, the Philippines and the US.

While officials in the company would not comment on the figure, sources in the industry have estimated ASE's total investment in China to reach over US$1 billion.

ASE joins other IC-packaging companies like Amkor, Asat, IBM Microelectronics and Gem Services in setting up shop in China, taking advantage of the country's huge demand for chips, cellphones, consumer electronics and other products.

As reported by Bloomberg, ASE said earlier this month it expected to announce the new plants by year end after gaining approval from the Taiwan government, which so far has prohibited local chip companies from investing in China.