ASE Technology Holding Co.Ltd - ADR

Strong Revenue Growth: ASE Technology Holdings reported a 12% increase in consolidated revenue for the year 2025, with revenue from the Advanced Packaging business (ATM) rising 23%. The LEAP (Leading Edge Advanced Packaging) services revenue also saw significant growth, reaching $1.6 billion, up from $0.6 billion in 2024. For 2026, there is a forecast to double LEAP revenue to $3.2 billion, supported by AI proliferation and general market recovery.

Improving Margins: The gross margin improved to 19.5% in Q4 2025 from 17.7% for the full year, driven by higher factory utilization and favorable product mix. Expectations suggest ATM gross margin could trend toward the high end of the structural margin range throughout 2026, indicating efficient operational leverage and ongoing profitability improvements.

Strategic Focus and Investments: ASE is strategically focusing on expanding its footprint outside of Taiwan, particularly in Penang, Korea, and the Philippines, to capture non-Taiwan wafer production. The company will invest aggressively in CapEx, adding an additional $1.5 billion on top of last year’s $3.4 billion to support growth opportunities.