In August 2000, Taiwan-based Orient Semiconductor Engineering (OSE) began a reported US$200 million expansion involving two chip-assembly plants near its Kaohsiung headquarters. The plan focused on ball-grid-array (BGA) packaging while retaining capacity for other package types; the contemporaneous report expected the factories to begin production by late 2000 or early 2001. That was a forecast, not confirmation that they opened on schedule.
What OSE planned to build
EE Times reported on 3 August 2000 that OSE had begun expanding with two plants near its Kaohsiung headquarters. The company’s reported investment was US$200 million. The facilities were expected to enter production by late 2000 or early 2001, but the report does not establish whether they did so or what became of the plants.
The project was intended to increase OSE’s chip assembly and packaging capacity. In semiconductor manufacturing, packaging is the work of assembling a processed silicon die into a package that protects it and provides electrical connections; related operations can include testing the packaged device.
Which package types the plants would target
OSE planned to direct 30–40% of the new plants’ capacity to ball-grid-array packaging, with the remainder intended for quad-flat-pack and small-outline-package products, according to EE Times.
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| Package type | Role in OSE’s reported plan |
|---|---|
| Ball-grid array (BGA) | Target for 30–40% of new-plant capacity, according to EE Times in 2000. |
| Quad-flat pack (QFP) | Among the package types intended for the remaining capacity, according to EE Times in 2000. |
| Small-outline package (SOP) | Among the package types intended for the remaining capacity, according to EE Times in 2000. |
OSE vice president Chen Ah-mei described the strategy this way: “BGA is our target product, but we can support other package types as well.” The mix shows a targeted expansion rather than a plan to make the new facilities exclusively BGA-focused.
OSE’s 2023 ESG report describes example packaging flows that help clarify what assembly may involve. Its wire-bond example runs through wafer sawing, die bonding, wire bonding, molding, marking, singulation, testing and packing. Its flip-chip example uses wafer sawing, flip-chip mounting, molding, marking, singulation, testing and packing. These are examples, not a complete account of OSE’s lines or a verified description of the 2000 plants. (OSE ESG Report 2023)
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Why the expansion mattered in 2000
EE Times framed the investment as an attempt to help OSE gain ground on Taiwanese competitors ASE and Siliconware, also known as SPIL. The article described ASE as Taiwan’s largest and Siliconware as its second-largest IC-packaging house at that time; those are period rankings, not current standings.
The figures in the report placed OSE’s 1999 sales at US$315 million, up from US$272 million in 1998. For ASE, it reported US$1.1 billion in 1999 sales versus US$660 million in 1998. These company figures indicate the scale difference described in the period coverage, rather than a current comparison.
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EE Times also reported that OSE had acquired a 75% stake in San Jose-based Integrated Packaging Assembly Corp. for US$6.8 million in April 2000. The transaction and price are reported by that article; they are not independently verified here.
The industry backdrop was expansion, too. EE Times, citing Taiwan’s Industrial Technology Research Institute (ITRI), said the island’s IC packaging, test and assembly industry grew from US$1.9 billion in 1994 to US$3.6 billion in 1999. The original ITRI publication was not located, so those market totals should be attributed to EE Times’s 2000 report rather than treated as independently checked ITRI data.
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Contemporary comments reflected the competitive tension. Analyst Thales Lee of Vision Communications in Taipei called OSE “an old company that remains very conservative, but it is one step behind the times.” An ASE spokesman said, “We do not feel threatened by OSE. We have a lot of catching up to do.” Chen responded, “We don’t pay attention to our competitor’s assertions. We use our own standards to judge our growth.” These comments are reported in EE Times and capture the views attributed to the speakers at the time.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What is known about OSE’s later Kaohsiung plans
The 2000 report should not be mistaken for a current expansion announcement. OSE’s current website describes two broad business areas: IC packaging and testing services, and electronics manufacturing services. Its turnkey service description lists wafer probing, substrate and lead-frame design, design for manufacturing, assembly, testing and EMS. Those current service pages do not confirm the operating status or output of the two plants announced in 2000. (OSE Turn-key Solution Service; OSE official homepage)
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OSE announced a separate assembly-and-testing facility in Kaohsiung’s Nanzih Technology Industrial Park in May 2023. Its announcement described a building with nine floors above ground and three below, more than 70,000 square feet of built-up area, a target completion in 2025 and 800 anticipated jobs. The target date has passed, but the announcement alone does not verify completion or current operations. (OSE’s 9 May 2023 facility announcement)
How the 2000 project fits Taiwan’s newer capacity investment
Taiwan’s Bureau of Industrial Parks reported on 22 September 2026 that SPIL had broken ground on a separate plant in Yunlin Industrial Park on 11 September. The government announcement put the investment at approximately NT$100 billion, identified CoWoS advanced packaging as a process, projected 2,200 jobs and scheduled operations for 2028. It is a newer example of investment in Taiwan’s packaging capacity, not evidence about OSE’s 2000 project or a direct comparison of the companies’ positions. (Taiwan Bureau of Industrial Parks’ SPIL Yunlin announcement)
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