Summary
Taipei, Oct. 30 (CNA) Taiwan ASE Technology Holding Co., the world's largest IC packaging and testing service provider, has raised its sales forecast …
What this means for you
ASE, a major employer in Taiwan's tech sector, raised its 2026 sales forecast for advanced IC assembly and testing to US$4 billion, reflecting strong global demand for AI applications. The company increased its capital expenditure budget by US$1 billion to US$11.5 billion, with half allocated to new plant construction and half to new equipment, sixty percent of which will support LEAP operations. ASE reported record third-quarter net profit of NT$26.996 billion (US$826 million), up 148 percent from a year earlier, and consolidated sales rose 30.25 percent in the first nine months of the year. These figures indicate expansion in the tech supply chain that supports industries relevant to Chinese readers in the US, including students and workers in engineering and semiconductor-related fields, though the article does not directly address visa policies, job openings in the US market, or changes to consumer prices experienced by immigrants.
Taipei, Oct. 30 (CNA) Taiwan ASE Technology Holding Co., the world's largest IC packaging and testing service provider, has raised its sales forecast for 2026 for its leading-edge assembly and testing (LEAP) operations to US$4 billion, from a previous estimate of US$3.7 billion.
Speaking at an investor conference Thursday, ASE Chief Financial Officer Joseph Tung (董宏思) said 2027 will be even better, with revenue generated from LEAP operations expected to double from 2026.
Due to strong global demand for AI applications, ASE has also increased its capital expenditure budget by US$1 billion from the previous estimate of US$10.5 billion made in July to US$11.5 billion, Tung said.
Tung said that out of the additional US$1 billion, half will go to new plant construction and the other half will be used to purchase new equipment, Tung said. Sixty percent of the new equipment purchases will be used for LEAP operations, Tung added.
At the investor conference, ASE announced record net profit for the third quarter of NT$26.996 billion (US$826 million), up 148 percent from a year earlier, with earnings per share at NT$6.13, compared with NT$2.50 a year earlier.
ASE posted consolidated sales of NT$244.16 billion in the July-September period, up 44.8 percent from a year earlier and up 27.8 percent from a quarter earlier. The sequential sales growth beat an earlier estimate of 21-22 percent by the company.
The third quarter's gross margin hit a new high of 22.1 percent, up 1.1 percentage points from the second quarter.
Tung said that as ASE continues to expand its LEAP business, the company is expected to see its gross margin -- the difference between revenue and the cost of goods sold -- improve in the fourth quarter to 23-24 percent and rise further in 2027.
He said ASE's consolidated sales are expected to grow 6-8 percent from the third quarter in Taiwan dollar terms based on an exchange rate of NT$31.9 against the U.S. dollar.
In the first nine months of this year, ASE posted net profit of NT$62.19 billion, up 139 percent from a year earlier, with EPS at NT$14.17.
Consolidated sales rose 30.25 percent from a year earlier to NT$608.89 billion, with a gross margin of 21.17 percent.
(By Chung Jung-feng and Frances Huang)
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ASE raises advanced IC assembly, testing sales forecast for 2026
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Source: Focus Taiwan
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