Nvidia Supplier ASE Raises Capex by $1.5B, Forecasts 10% Packaging Revenue Growth
ASE Technology expects 2026 advanced packaging revenue to rise 10% to over $3.5 billion after boosting 2026-27 capex by $1.5 billion for new facilities and machinery. Its SPIL subsidiary, a key Nvidia AI chip packager, reported Q1 revenue up 17.2% and net income up 87.3%, highlighting capacity expansion.
1. ASE Projects 10% Advanced Packaging Revenue Growth
ASE Technology Holding forecasts its advanced packaging revenue will climb 10% to exceed $3.5 billion in 2026, up from earlier projections of $3.2 billion, driven by increasing demand for AI chips in data centers and high-performance computing.
2. Capex Increase of $1.5B Aims at Expansion Through 2027
The company has added $900 million for buildings and infrastructure and $600 million for machinery to its 2026-27 capital expenditure plan, targeting new facilities in Kaohsiung with phase one operations set for April 2027 and phase two by October 2027.
3. SPIL Unit Fuels Nvidia AI Chip Packaging
ASE’s subsidiary Siliconware Precision Industries (SPIL) serves as a major packaging supplier for Nvidia’s AI chips, positioning the group to benefit directly from the chipset maker’s growing production requirements.
4. Q1 Revenue and Net Income Surge Highlights Capacity Demand
In the first quarter, ASE reported revenue of T$173.66 billion ($5.50 billion), up 17.2% year-over-year, and net income jumped 87.3% to T$14.148 billion ($448.22 million), reflecting robust order flow for advanced packaging services.