ASE Technology Raises Capex by $1.5B, Sees 2026 Packaging Revenue Above $3.5B
Taiwan’s ASE Technology predicts 2026 advanced packaging revenue will grow 10% to exceed $3.5 billion, up from its prior $3.2 billion projection, and is boosting 2026–2027 capex by $1.5 billion for facilities and machinery. In Q1, ASE posted NT$173.66 billion ($5.5 billion) revenue (+17.2%) and net income rose 87.3% to NT$14.148 billion ($448 million).
1. Advanced Packaging Revenue Outlook
ASE Technology’s advanced packaging unit is projected to generate over $3.5 billion in 2026 revenue, marking a 10% increase from its previous $3.2 billion target. Strong AI chip demand underpins this growth, positioning the business as a key driver for the company’s overall sales.
2. Q1 Financial Performance and Share Moves
In the first quarter, ASE reported NT$173.66 billion ($5.5 billion) in revenue, up 17.2% year-over-year, and net income climbed 87.3% to NT$14.148 billion ($448 million), or 20 cents per share. The stock has surged roughly 95% since January, outperforming the broader market despite a 1.4% dip ahead of the earnings release.
3. Capital Expenditures and Expansion Plans
ASE has raised its capital expenditures by $900 million for new facilities and $600 million for machinery to support 2026–2027 demand. It also broke ground on a T$108.3 billion ($3.43 billion) chip testing campus in Kaohsiung, with phased operations slated for April and October 2027.