Taiwan's ASE expects strong demand to boost advanced chip packaging sales in 2026
A smartphone with a displayed ASE Technology Holding logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration
TAIPEI, April 29 : Taiwan’s ASE Technology Holding, the world’s largest chip packaging and testing provider, said on Wednesday it expected revenue from its leading‑edge advanced packaging business to rise 10 per cent to more than $3.5 billion in 2026, as the company sees strong customer demand for AI chips.
CONTEXT AND DETAILS:
• In February, the company said it expected the business to double to $3.2 billion by 2026.
• It also raised its capital expenditures for this year, adding $900 million for buildings and infrastructure and an additional $600 million for machinery to support strong demand for its advanced packaging services in 2026 and 2027.
• The holding company's subsidiary Siliconware Precision Industries (SPIL) is a major packaging supplier for Nvidia's AI chips.
• On Wednesday, ASE reported first-quarter revenue of T$173.66 billion ($5.50 billion), up 17.2 per cent from a year earlier, while net income was up 87.3 per cent at T$14.148 billion ($448.22 million).
• ASE's shares have risen 95 per cent so far this year, far outperforming a 36 per cent rise in the broader market. The company's shares closed down 1.4 per cent on Wednesday ahead of its earnings release.
• In April, ASE broke ground on a new chip testing campus in the southern Taiwan city of Kaohsiung, with an investment of more than T$108.3 billion ($3.43 billion), as demand for high-end chips grows. The first phase is scheduled to begin operations in April 2027, with the second phase set to come online in October 2027.
($1 = 31.5650 Taiwan dollars)
