ASE Technology Holding, a leading semiconductor testing and packaging firm, said it would build a smart factory, as the industry faces a labour shortage.

US chip designer Qualcomm’s Snapdragon system will be powering the smart factory in Kaohsiung, Taiwan. ASE said the smart factory will be deploying a 5G mmWave new radio-dual connectivity standalone network to improve speed, stability and equipment efficiency. ASE did not reveal its investment plan.

ASE, which began investing in automated factories in 2015, plans to build 10 smart factories this year, reaching a total of 37 smart factories in Taiwan by the end of the year, Reuters news report said.

ASE in a news statement said it is accelerating its adoption of smart manufacturing technologies including automation to counter the talent crunch and adapt to diverse customer requirements.

“We hope to inspire industry players to contribute to building a resilient global smart manufacturing and equipment cluster,” ASE Chief Executive Officer Tien Wu said in a statement.

“Our strengths in integrating 5G enterprise private networks and vertical applications have led to the completion of Taiwan’s first 5G NR-DC SA network with Ericsson and Qualcomm Technologies,” Peng Chen, Chairman and General Manager, Asia Pacific Telecom.