ASE Technology Holding Co Ltd
NYSE:ASX
ASE Technology Holding Co Ltd
ASE Technology Holding Co., Ltd. finds itself at the heart of a pivotal industry, quietly powering the global technology sphere with its advanced semiconductor packaging and testing services. Founded in 1984 and headquartered in Kaohsiung City, Taiwan, ASE Technology has grown into a critical player in the semiconductor supply chain, offering a suite of services that are indispensable to the creation of electronic devices. Focused on encapsulating and protecting delicate chips, the company specializes in turning semiconductor wafers into operational miracles that can conduct electricity and process information. The intricate dance of semiconductor design and manufacturing takes a pivotal turn at ASE Technology, where raw semiconductor wafers are encased in reliable packages that can withstand the rigors of practical use, all while being tested for functionality and quality.
The company's business model thrives on long-term collaborations with industry giants – think leading chipmakers, consumer electronics companies, and automotive enterprises. These alliances bolster ASE's ability to innovate and invest in cutting-edge facilities capable of sophisticated processes such as wafer-level packaging and system-in-package solutions. Beyond sheer manufacturing might, ASE leverages its expertise in engineering and logistics to create value-added solutions, ensuring its components meet the nuanced needs of varied applications, from high-performance computing to mobile communications. Revenue streams are robust, derived from a diversified portfolio that spans consumer electronics, communications, computing, and automotive sectors, reflecting ASE Technology's role as a linchpin in an increasingly digital world. By continuously evolving in a sector marked by rapid technological shifts, ASE Technology not only secures enduring relevance but also expands its footprint as a beacon of innovation and reliability.
ASE Technology Holding Co., Ltd. finds itself at the heart of a pivotal industry, quietly powering the global technology sphere with its advanced semiconductor packaging and testing services. Founded in 1984 and headquartered in Kaohsiung City, Taiwan, ASE Technology has grown into a critical player in the semiconductor supply chain, offering a suite of services that are indispensable to the creation of electronic devices. Focused on encapsulating and protecting delicate chips, the company specializes in turning semiconductor wafers into operational miracles that can conduct electricity and process information. The intricate dance of semiconductor design and manufacturing takes a pivotal turn at ASE Technology, where raw semiconductor wafers are encased in reliable packages that can withstand the rigors of practical use, all while being tested for functionality and quality.
The company's business model thrives on long-term collaborations with industry giants – think leading chipmakers, consumer electronics companies, and automotive enterprises. These alliances bolster ASE's ability to innovate and invest in cutting-edge facilities capable of sophisticated processes such as wafer-level packaging and system-in-package solutions. Beyond sheer manufacturing might, ASE leverages its expertise in engineering and logistics to create value-added solutions, ensuring its components meet the nuanced needs of varied applications, from high-performance computing to mobile communications. Revenue streams are robust, derived from a diversified portfolio that spans consumer electronics, communications, computing, and automotive sectors, reflecting ASE Technology's role as a linchpin in an increasingly digital world. By continuously evolving in a sector marked by rapid technological shifts, ASE Technology not only secures enduring relevance but also expands its footprint as a beacon of innovation and reliability.
Revenue Growth: ASE reported strong consolidated revenue growth of 10% YoY for Q4 and 8% for the full year, with the ATM segment up 20% and the EMS segment down 5%.
Record Margins: Gross margin for Q4 hit 19.5%, up 3.1 percentage points YoY, and operating margin reached 9.9%. Margins were supported by higher utilization, favorable product mix, and currency effects.
LEAP Business Surge: Leading Edge Advanced Packaging (LEAP) revenue more than doubled to $1.6 billion in 2025 and is expected to double again to at least $3.2 billion in 2026.
Strong CapEx Plans: ASE plans to add $1.5 billion to 2026 machinery CapEx (totaling nearly $5 billion), with aggressive investments focused on leading-edge and automation.
Guidance: Q1 2026 revenue and margins are expected to decline modestly QoQ due to seasonality, but ATM gross margin will stay within the 24–25% structural range and improve throughout the year.
Optimistic Outlook: Management expects continued outperformance by the ATM segment, ongoing margin improvement, and strong demand from AI, automotive, and industrial sectors.
EMS Repositioning: EMS business is shifting focus away from consumer devices toward AI, server, and industrial applications, with several projects in the pipeline.