Taiwan's ASE, AUO Eye U.S. Factories to Offset Tariffs; TSMC Synergy Eyed

May 1, 2025 — Taiwan’s ASE Technology Holding Co. (ASE), the global leader in semiconductor packaging and testing, and AU Optronics Corp. (AUO), a top-tier display panel manufacturer, are exploring plans to establish production facilities in the United States to counter potential risks from U.S. tariff policies, according to a report by Economic Daily.

ASE CFO Dong Hongsi emphasized that the company is actively evaluating U.S. expansion strategies to meet client demands and extend its Taiwan-based supply chain capabilities. "Any final decision on investment scale and timelines will hinge on cost efficiency, market dynamics, and long-term economic feasibility," Dong stated. Should the plans proceed, ASE could synergize with TSMC’s Arizona fab to bolster advanced packaging services, reinforcing Taiwan’s semiconductor foothold in the U.S. market.

Currently, less than 10% of ASE’s electronics manufacturing services (EMS) output is directly shipped to the U.S., enabling flexibility to mitigate tariff-related risks through strategic production diversification. Meanwhile, AUO signaled parallel intentions to localize U.S. manufacturing, underscoring Taiwanese tech firms’ urgency to decentralize global supply chains amid escalating trade uncertainties.