ASE Technology Holding: Advanced Packaging and Testing Growth Exceeds Expectations, Increased Capital Expenditure for Capacity Expansion
ASE Technology Holding announced that its Advanced Packaging and Testing (LEAP) business growth exceeded expectations, leading to an additional capital expenditure of approximately US$1.5 billion to expand capacity, anticipating strong growth until 2027. Q2 revenue is projected to increase by 7-9% QoQ, with an improved gross profit margin.
📋 Article Processing Timeline
- 📰 Published: April 29, 2026 at 19:00
- 🔍 Collected: April 29, 2026 at 19:31 (30 min after Published)
- 🤖 AI Analyzed: April 30, 2026 at 02:56 (7h 25m after Collected)
Central News Agency
(Central News Agency reporter Chung Jung-feng, Taipei, 29th) Don H.C., CFO of ASE Technology Holding Co., Ltd. (ASEH), a major semiconductor packaging and testing company, stated today that this year's LEAP advanced packaging and testing business growth has exceeded original expectations. The company will continue to increase capital expenditure to expand production capacity, in response to the strong growth trend expected to continue until 2027.
ASE Technology Holding held an online investor conference this afternoon. Looking ahead to Q2 operations, Don H.C. pointed out that based on the assessment of current business conditions and an exchange rate assumption of NT$31.8 to US$1, if denominated in NTD, ASEH's consolidated revenue for Q2 is expected to increase by 7% to 9% quarter-on-quarter; Q2 gross profit margin will increase by 0.2 to 1 percentage point quarter-on-quarter, and Q2 operating profit margin will increase by 0.5 to 1.2 percentage points quarter-on-quarter.
Specifically, in the Packaging and Testing (ATM) business, Don H.C. expects that, if denominated in NTD, the packaging and testing business's Q2 revenue will increase by 9% to 11% quarter-on-quarter, with a gross profit margin of approximately 26% to 27%. In the Electronic Manufacturing Services (EMS) business, if denominated in NTD, EMS Q2 revenue is expected to grow by at least 10% year-on-year, with an operating profit margin similar to Q2 of last year.
Regarding the Advanced Packaging and Testing (LEAP) business, Don H.C. stated that this year's LEAP business growth has exceeded original expectations, with an estimated further 10% growth beyond original assessment, reaching US$3.5 billion. 75% of LEAP's revenue comes from packaging and 25% from testing. Among LEAP's testing revenue, wafer sort accounts for about 75% and final test for about 25%.
In terms of capital expenditure layout, Don H.C. stated that in response to LEAP advanced packaging and testing demand, ASEH will additionally invest approximately US$900 million this year for plant infrastructure and increase equipment investment by approximately US$600 million, especially to expand wafer sort production capacity, in response to the strong growth trend expected to continue until 2027.
Analysts pointed out that the market originally expected ASEH's capital expenditure this year to be around US$7 billion. Due to LEAP advanced packaging and testing demand, the capital expenditure scale is expected to increase to US$8.5 billion.
Regarding the Panel Level Packaging (PLP) layout, ASE Technology Holding stated that a fully automated trial production line is undergoing customer certification, with small-scale production planned to start in 2027.
ASE Technology Holding stated that advanced packaging full-process projects continue to advance. Analysts expect ASEH's revenue from advanced packaging full processes to reach US$300 million this year.
ASE Technology Holding's consolidated revenue in Q1 was NT$173.662 billion, a 17% increase compared to Q1 2025. The single-quarter gross profit margin was 20.1%, a 14-quarter high; operating profit margin was 10.1%, a 13-quarter high. Net profit attributable to owners of the parent company in a single quarter was NT$14.148 billion, a 4% decrease quarter-on-quarter but an 87% increase year-on-year. Basic earnings per share for the quarter were NT$3.24. (Editor: Chang Liang-chih) 1150429
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(Central News Agency reporter Chung Jung-feng, Taipei, 29th) Don H.C., CFO of ASE Technology Holding Co., Ltd. (ASEH), a major semiconductor packaging and testing company, stated today that this year's LEAP advanced packaging and testing business growth has exceeded original expectations. The company will continue to increase capital expenditure to expand production capacity, in response to the strong growth trend expected to continue until 2027.
ASE Technology Holding held an online investor conference this afternoon. Looking ahead to Q2 operations, Don H.C. pointed out that based on the assessment of current business conditions and an exchange rate assumption of NT$31.8 to US$1, if denominated in NTD, ASEH's consolidated revenue for Q2 is expected to increase by 7% to 9% quarter-on-quarter; Q2 gross profit margin will increase by 0.2 to 1 percentage point quarter-on-quarter, and Q2 operating profit margin will increase by 0.5 to 1.2 percentage points quarter-on-quarter.
Specifically, in the Packaging and Testing (ATM) business, Don H.C. expects that, if denominated in NTD, the packaging and testing business's Q2 revenue will increase by 9% to 11% quarter-on-quarter, with a gross profit margin of approximately 26% to 27%. In the Electronic Manufacturing Services (EMS) business, if denominated in NTD, EMS Q2 revenue is expected to grow by at least 10% year-on-year, with an operating profit margin similar to Q2 of last year.
Regarding the Advanced Packaging and Testing (LEAP) business, Don H.C. stated that this year's LEAP business growth has exceeded original expectations, with an estimated further 10% growth beyond original assessment, reaching US$3.5 billion. 75% of LEAP's revenue comes from packaging and 25% from testing. Among LEAP's testing revenue, wafer sort accounts for about 75% and final test for about 25%.
In terms of capital expenditure layout, Don H.C. stated that in response to LEAP advanced packaging and testing demand, ASEH will additionally invest approximately US$900 million this year for plant infrastructure and increase equipment investment by approximately US$600 million, especially to expand wafer sort production capacity, in response to the strong growth trend expected to continue until 2027.
Analysts pointed out that the market originally expected ASEH's capital expenditure this year to be around US$7 billion. Due to LEAP advanced packaging and testing demand, the capital expenditure scale is expected to increase to US$8.5 billion.
Regarding the Panel Level Packaging (PLP) layout, ASE Technology Holding stated that a fully automated trial production line is undergoing customer certification, with small-scale production planned to start in 2027.
ASE Technology Holding stated that advanced packaging full-process projects continue to advance. Analysts expect ASEH's revenue from advanced packaging full processes to reach US$300 million this year.
ASE Technology Holding's consolidated revenue in Q1 was NT$173.662 billion, a 17% increase compared to Q1 2025. The single-quarter gross profit margin was 20.1%, a 14-quarter high; operating profit margin was 10.1%, a 13-quarter high. Net profit attributable to owners of the parent company in a single quarter was NT$14.148 billion, a 4% decrease quarter-on-quarter but an 87% increase year-on-year. Basic earnings per share for the quarter were NT$3.24. (Editor: Chang Liang-chih) 1150429
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