Taiwan's ASE Technology Holding, the global leader in chip packaging and testing, anticipates a significant boost in its advanced packaging business. The company expects revenue in this segment to climb 10% to over $3.5 billion by 2026, driven by robust customer demand for AI chips.
This projection follows an earlier forecast that anticipated the business doubling to $3.2 billion by 2026. To support this growth, ASE has increased its capital expenditures, allocating an additional $1.5 billion for infrastructure and machinery to meet anticipated demand in 2026 and 2027.
The company's subsidiary, Siliconware Precision Industries (SPIL), plays a crucial role as a key packaging supplier for Nvidia's AI chips.
In the first quarter, ASE reported T$173.66 billion ($5.50 billion) in revenue, a 17.2% year-over-year increase, with net income surging 87.3% to T$14.148 billion ($448.22 million).
ASE's market performance has been strong, with its shares rising 95% year-to-date. The company recently broke ground on a new chip testing campus in Kaohsiung, Taiwan, representing an investment of over T$108.3 billion ($3.43 billion), with operations scheduled to begin in 2027.