ASE Technology Posts Record February Revenue on Strong AI Packaging and Testing Demand

ASE Technology Holding, the world’s largest semiconductor assembly and testing provider, is emerging as a key beneficiary of the artificial-intelligence investment cycle. Demand for high-performance computing chips is increasing the complexity and value of advanced packaging, giving the Taiwan-based company a stronger growth engine as chipmakers race to expand AI capacity and upgrade computing infrastructure.

ASE Technology reported record consolidated revenue and net income for the second quarter of 2026, with profit surging 180% from a year earlier. Earnings per share reached a quarterly record of NT$4.80. Chief Executive Officer Tien Wu said AI is driving a paradigm shift and boosting advanced-packaging demand, prompting the company to raise its full-year 2026 outlook across the board and continue increasing capital expenditure.

ASE Technology Holding is the world’s largest semiconductor assembly and testing provider, and its subsidiary Siliconware Precision Industries also supplies packaging for NVIDIA AI chips. As AI accelerators increasingly integrate chiplets and high-bandwidth memory, CoWoS-like advanced packaging has become a capacity bottleneck. LEAP is therefore central to ASE’s growth and profitability in 2026 and 2027.

At an earnings briefing on April 29, 2026, ASE raised its capital expenditure plan by 20%, from the $7 billion estimated in February to $8.5 billion. Of the additional $1.5 billion, $900 million will go toward plant facilities and $600 million toward equipment. ASE also increased its LEAP revenue target from $3.2 billion to more than $3.5 billion, while maintaining its $300 million target for CoWoS-like business.

Generative AI and high-performance computing chips continue to drive demand for advanced packaging, making assembly and testing capacity a critical part of supply-chain expansion. ASE Technology Holding, the world’s largest semiconductor assembly and testing provider, can shorten construction lead times by acquiring an existing large-scale facility through its ASE Semiconductor subsidiary. The deal also reflects the Southern Taiwan Science Park’s further transformation from a display manufacturing base into a hub for advanced processes and packaging.

On April 15, 2026, ASE Technology Holding announced on behalf of ASE Semiconductor that the subsidiary would buy Innolux’s Fab 5 building and ancillary facilities in the Southern Taiwan Science Park’s Xinshi District in Tainan for NT$14.85 billion before tax. The building covers about 184,300 square meters. Innolux expects a disposal gain of about NT$13.3 billion, while ASE will separately reimburse approximately NT$982 million in equipment-removal costs to accelerate the facility’s handover and the expansion of advanced packaging capacity.