Taiwan’s ASE Technology Holding, the world’s largest company for packaging and testing chips, announced on Wednesday that it expects revenue from its top-tier advanced packaging business to grow by 10%. This means more than $3.5 billion in 2026, as customers are showing strong demand for AI chips. Just in February, the company had predicted this business would double to $3.2 billion by 2026. This new, higher forecast shows even stronger growth.
ASE also increased its spending plans for this year. They added $900 million for new buildings and infrastructure. Another $600 million is for machinery to support the high demand for its advanced packaging services in 2026 and 2027.
Siliconware Precision Industries (SPIL), a part of ASE Technology, is a key supplier for packaging Nvidia’s AI chips. This connection highlights ASE’s important role in the booming AI chip market. On Wednesday, ASE reported its first-quarter revenue was T173.66billion(173.66billion(5.50 billion), which is up 17.2% from the same time last year. Its net income also jumped by 87.3% to T 14.148billion(14.148billion(448.22 million).
ASE’s shares have gone up 95% this year, performing much better than the broader market’s 36% rise. However, the company’s shares closed down 1.4% on Wednesday before its earnings report came out. In April, ASE started building a new chip testing campus in Kaohsiung, a city in southern Taiwan. This project involves an investment of over T108.3billion(108.3billion(3.43 billion) to meet the growing demand for high-end chips. The first part of this campus is expected to start working in April 2027, with the second part opening in October 2027.
This aggressive expansion and increased revenue forecast underscore the critical role ASE Technology plays in the global semiconductor supply chain, especially with the explosion of AI technology. The company is clearly positioning itself to capitalize on the sustained demand for advanced chip packaging and testing services.
