ASE Technology Holding Co Ltd
TWSE:3711
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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 Beat: Q3 consolidated revenue was TWD 168.6 billion, up 12% QoQ and 5% YoY, outperforming company expectations with record ATM business revenues.
Profitability Up: Gross margin was 17.1%, up 0.1 pts QoQ and 0.6 pts YoY, despite significant foreign exchange headwinds.
Strong ATM Performance: ATM revenues hit a record TWD 100.3 billion, up 8% QoQ and 17% YoY; test business continues to outpace assembly.
LEAP & AI Momentum: LEAP and test services, driven by AI demand, remain growth leaders; company on track for TWD 1.6 billion LEAP revenue in 2025, with another TWD 1 billion expected in 2026.
Guidance Raised: Q4 consolidated revenue guided up 1–2% QoQ, with gross and operating margins expected to rise 70–100 bps QoQ; ATM full-year 2025 revenue growth guided to over 20% in USD terms.
CapEx Increase: Full-year CapEx to rise by several hundred million USD to meet customer demand and support growth into 2026.
Supply Chain Stable: No major disruptions seen in substrate/material supply; company positions itself to manage shortages if they arise.