ASE Technology Holding Increases 2026 Capital Expenditure to $10.5 Billion Due to Strong Demand
Taiwan's ASE Technology Holding, the world’s largest chip packaging and testing provider, announced a significant increase in its capital expenditure for 2026 by $2 billion, bringing it to approximately $10.5 billion. The decision follows strong demand across multiple sectors driven largely by advancements in AI technology that are enabling new applications and increasing hardware needs. The company plans to allocate the additional funds equally between facilities ($1 billion) and equipment ($1 billion). ASE is currently developing 13 greenfield sites this year, with eight brownfield projects underway. Revenue from its leading-edge advanced packaging (LEAP) business has exceeded expectations for 2026 and could double in 2027 due to strong momentum. ASE reported a second-quarter revenue of T$191.06 billion ($5.88 billion), up 27% year-over-year, with net income rising by an impressive 180%. The company's shares have surged over the past year and continued their upward trend on Thursday.
Topics: AI hardware capital expenditure chip packaging demand growth