Can ASE Technology Benefit From Expanding AI Infrastructure? – June 26, 2026

Key Takeaways

ASE Technology is benefiting from rising AI demand across assembly, testing and advanced packaging.
ATM revenues rose 30% year over year to a record NT$112.4B, supported by higher factory use.
ASE Technology raised its 2026 capex and now expects LEAP revenues to top $3.5B in 2026.

ASE Technology Holding Co., Ltd. (ASX Quick QuoteASX – Free Report) is emerging as a key beneficiary of the global artificial intelligence (AI) infrastructure buildout. As demand for AI accelerators, high-bandwidth memory and advanced chip packaging grows, the company is seeing strong momentum in its semiconductor assembly, testing and advanced packaging businesses. First-quarter 2026 results reinforced this trend, with its ATM (Assembly, Testing and Material) business delivering record revenues despite a seasonally weak quarter.

AI Demand Is Fueling Advanced Packaging Growth

AI-related products are becoming an increasingly important growth engine for ASE Technology. Management noted that AI workloads are reducing the traditional seasonality of the packaging business, while demand for its LEAP advanced packaging platform, traditional advanced packaging and wirebond services remained strong throughout the first quarter. ATM revenues increased 30% year over year to a record NT$112.4 billion, supported by higher factory utilization and a richer mix of advanced packaging products. Computing applications, which include AI-related products, also continued to increase as a share of ATM revenue.

Management is responding by accelerating investments. ASE Technology raised its 2026 capital expenditure plan, increasing spending on LEAP capacity, wafer-sort capabilities and manufacturing infrastructure to support stronger-than-expected customer demand. The company now expects LEAP revenues to exceed $3.5 billion in 2026, roughly 10% above the prior guidance, while forecasting even stronger incremental growth in…

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