The explosive growth of the artificial intelligence chip market is forcing the semiconductor testing supply chain to scale up its operations rapidly. Capitalizing on this momentum, Chunghwa Precision Test held a groundbreaking ceremony on Monday for its third manufacturing facility at the Pingzhen Industrial Park in Taoyuan.General Manager Scott Huang (黃水可) highlighted that demand in the current market cycle is no longer growing linearly but expanding by multiples.
To meet this immediate surge, the company is leasing additional floor space and reorganizing production lines at its two existing facilities, aiming to double its medium-to-long-term capacity by late August or September. If these near-term upgrades proceed as scheduled, Huang expects this year's growth to easily surpass last year's figures.
The event was led by Chairman Hung Wei-kuo (洪維國), and joined by representatives from Chunghwa Telecom, Chunghwa Investment, the Taipei Exchange, as well as local government officials. Hung emphasized that the new plant is a critical strategic step to position the company as a global leader in advanced testing, rather than just an expansion of physical space.
Layout of New Factory
Slated for completion in 2028, the $111 million smart factory will serve as a primary hub for AI and high-speed computing test demand. The eight-story facility, which includes one basement level, will span roughly 36,360 square meters. Built to green standards and integrating automated production concepts, the plant is projected to create more than 300 jobs.
A fundamental structural shift in AI chip testing demand is the primary catalyst behind this rapid expansion. Huang noted that while many products previously lingered in the sample stage, demand across graphics processing units, central processing units, AI application-specific integrated circuits, and system-level testing is now rising simultaneously.
Demand for Testing Reliability
Because AI chips feature high unit prices and consume massive amounts of power, client requirements for testing reliability have intensified. This pushes the technical complexity of probe cards, test boards, and related interfaces to new heights, shifting the industry standard from traditional functional verification to comprehensive system-level testing.
With order visibility becoming clearer and arriving at a steady pace, the company's near-term capacity expansions will soon yield financial results. Revenue contributions from the newly installed equipment could emerge as early as the fourth quarter of this year and carry into the first quarter of next year.
By the time the third plant comes online in 2028, total capacity could grow by at least another full multiple. Huang credits the company's competitive edge to its comprehensive, in-house integration of equipment, processes, systems, and materials.
By weaving AI into its own manufacturing and management workflows, the company ensures that physical expansion also translates into better lead times, elevated quality, and sharper manufacturing efficiency.
Future Industry Trends
Looking toward the industry's shift toward co-packaged optics and silicon photonics, Huang predicted that while optical interconnects will become increasingly prevalent, traditional copper connections will remain relevant in the near term. From a testing perspective, the verification processes for optical and electrical components are distinctly different, and achieving high-volume production with tight optical-silicon integration at the CPU level remains an ongoing challenge.
While co-packaged optics represent a crucial future direction, Huang stressed that the underlying testing architecture must be completely redefined as the industry transitions from advanced packaging to mass production.
Consequently, future competition in advanced testing will hinge on accommodating new packaging formats and managing extreme power consumption. Chunghwa's current probe cards can support testing at roughly 1,000 watts, with a next-generation target of 2,000 watts — a milestone that will require significant breakthroughs in thermal management.
Difficulty of Attracting Talent
Yet, despite these technological and infrastructural leaps, talent acquisition remains a formidable hurdle. Huang acknowledged that the company needs to hire hundreds of skilled workers. Even with increased automation, a substantial workforce is essential for equipment operation, process management, and engineering support, proving that the AI boom is as much a war for talent as it is a race for manufacturing capacity. （Related： Opinion | Taiwan's T-400 Drone Isn't Just a New Aircraft — It's Strategic Ambition ｜ Latest ）
