ASE Technology Holding Co., Ltd. (NYSE:ASX) shares are trading higher on Tuesday. The company opened its fifth plant in Penang, enhancing its packaging and testing capabilities in the Bayan Lepas Free Industrial Zone. 

This new facility is part of a strategic expansion plan that will increase ASE’s Malaysian operations from 1 million square feet to about 3.4 million square feet.

Notably, the site has enhanced operations with Industry 4.0 technologies and automation. The new plant uses AIoT to detect abnormalities, improve yield, and optimize production, boosting productivity and efficiency.

Penang Deputy Chief Minister II Yang Berhormat Jagdeep Singh Deo A/L Karpal Singh said, ”The establishment of ASE’s new chip packaging and testing facility marks a significant milestone, introducing cutting-edge technological capabilities to its decades-long operations in the state.” 

Tien Wu, CEO of ASE Inc, added, “Southeast Asia is increasingly becoming an important base for semiconductors, given its growing digital economy propelling the demand for advanced chips and its shift towards design and chip manufacturing in recent years.”

”With Malaysia solidifying its position as a regional semiconductor hub, we see our expanded facility playing an even greater role across the global semiconductor value chain and contributing to the country’s economic growth.”

This month, ASE Tech reported fourth-quarter earnings of 13 cents per ADS, missing the analyst consensus estimate of 15 cents and sales of $5.045 billion, which fell short of the $5.590 billion estimate.

Investors can gain exposure to the stock via National Security Emerging Markets Index ETF (NASDAQ:NSI).

Price Action: ASX shares are up 0.97% at $10.99 at the last check Tuesday.

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