Semiconductor packaging, testing and EMS group reported NT$191,064 million in second-quarter revenue and NT$21,068 million in profit as it accelerated AI-driven capacity expansion through 2028 and partly 2029.
ASE Technology Holding Co., Ltd. reported unaudited second-quarter 2026 net revenue of NT$191,064 million, up 26.7% from a year earlier and 10.0% from the prior quarter, while net income attributable to shareholders of the parent rose to NT$21,068 million from NT$7,521 million in 2Q25 and NT$14,132 million in 1Q26. Basic earnings per share reached NT$4.80, or US$0.304 per ADS, and the company said revenue, profit and EPS were record quarterly highs. At the same time, ASE said it raised annual capital expenditure for a second time this year to about US$10.5 billion, or roughly NT$340 billion, as strong demand for advanced and mainstream semiconductor packaging and testing, including AI-related demand, continued to drive expansion. ATM revenue rose to NT$126,148 million, up 36.3% year over year and 12.2% sequentially, with gross margin improving to 27.3% from 26.0% and operating margin to 15.7% from 14.1%. EMS revenue increased to NT$65,789 million, up 11.9% year over year and 6.3% sequentially, while gross margin fell to 8.9% from 9.5% and operating margin to 2.4% from 3.0%. CFO Joseph Tung said the additional capex is split evenly between buildings and equipment, bringing the full-year plan to about US$4 billion for factories and infrastructure and US$6.5 billion for equipment to support LEAP advanced packaging, mainstream packaging and testing. COO Tien Wu said the constraint is now how fast ASE can build factories, install tools and ramp capacity, with 13 new construction projects and 8 renovation projects under way and capacity under construction expected to support the company through 2028, with some extending into 2029. ASE also gave third-quarter guidance, assuming US$1 equals NT$31.9, for consolidated revenue to rise 21% to 22% sequentially, gross margin of 20.5% to 21.5% and operating margin of 11.5% to 12.5%. It expects ATM revenue to increase 11% to 13% quarter over quarter with gross margin of 28% to 29%, while EMS revenue is projected to grow 40% year over year with operating margin of 3.2% to 3.4%. The company said negative free cash flow may persist for some time as investment remains heavy, and said forward-looking statements remain subject to risks including semiconductor cyclicality, regulatory changes, foreign exchange swings, geopolitical tensions and changes in U.S. trade policies.