Taiwan's ASE: Assessing Its Role in Supporting Nvidia's $500 Bn US Initiative

Taiwan's ASE Technology Holding Co. has yet to decide how it will support Nvidia's plan to build artificial intelligence servers worth up to $500 billion in the United States over the next four years, the company announced on Wednesday.

The world's largest chip packaging and testing provider is still evaluating a customer's invitation to invest in the United States and has not decided on the size or timing of the investment, according to Chief Financial Officer Joseph Tung during an earnings call.

The company later confirmed to Reuters that he was referring to a plan announced earlier this month by AI chip giant Nvidia to expand production in the United States with the help of partners such as ASE subsidiary Siliconware Precision Industries. 

Analysts have questioned whether the $500 billion figure is realistic, given the difficulties suppliers may face in moving production. 

The customer had asked ASE to "look into the possibility of having some operations to support their business in the United States," Tung said. 

"We are currently discussing and evaluating opportunities with interest. There are currently no details available regarding the actual investment size or timing. But any decision we make will be economically viable."

When analysts inquired about the type of product to be considered, Tung stated that it would be an extension of what the company currently offers in Taiwan. 

Siliconware Precision Industries, which produces chip packaging for Nvidia, has no manufacturing facilities in the United States. Another ASE subsidiary, ISE Labs, operates two testing facilities in California.