[News] Chip Packaging Giant ASE Reportedly to Boost 2025 CapEx by US$1B Amid Strong AI and HPC Demand

AI is driving demand for advanced packaging, and Taiwan-based chip packaging giant ASE, which held its earnings call on the 30th, is moving quickly to ramp up operations. According to Economic Daily News, CFO Joseph Tung said the company’s 2025 capital expenditure will increase by US$1 billion to support machinery, plant construction, and related facilities in response to strong demand expected in 2026, with 2026’s revenue expected to rise by another US$1 billion. Institutional investors project that total CapEx in 2025 will exceed US$6 billion, the report adds.

Looking ahead to the fourth quarter, as the report notes, citing its CFO, based on an exchange rate of NT$30.4 to US$1, ASE’s consolidated revenue is expected to rise 1% to 2% quarter-on-quarter. Gross margin is projected to improve by 0.7 to 1 percentage point.

ASE’s Advanced Packaging and Testing Business Sees Strong Growth for 2025

Regarding this year’s performance in advanced packaging and testing, according to the report, Tung said revenue is expected to reach the target of US$1.6 billion, with 65% from advanced packaging and 35% from advanced testing. The report notes that the growth rate of testing is twice that of packaging, reflecting strong momentum. The company is also expanding its final test capacity, expected to support customers’ next-generation AI chips in the second half of 2026, as the report highlights.

Overall packaging and testing revenue, measured in U.S. dollars, is projected to increase by more than 20% from last year, according to Tung, as cited by the report.

ASE Posts Strong Q3 Results on AI-Driven Packaging Growth

As for its third-quarter results, ASE reported a net profit of NT$10.87 billion, up 45% from the previous quarter and 12% year-on-year — the highest level since 2023. Earnings per share reached NT$2.5, driven mainly by growth in advanced packaging and testing fueled by AI demand, as the report notes.

In remarks cited by Commercial Times, ASE said that advanced packaging technologies — including bump, flip-chip (FC), wafer-level packaging (WLP), and system-in-package (SiP) — now account for 48% of total packaging and testing revenue. The improved revenue mix and higher utilization rates have further strengthened profitability, as the report highlights.

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(Photo credit: ASE)