ASE Boosts CapEx to Meet Soaring AI Chip Demand

ASE Technology Holding, the world’s largest provider of chip assembly and testing services, announced plans to raise its capital expenditure by up to 16% this year amid surging demand for AI-related semiconductors.

ASE Technology Holding Co Chief Financial Officer Joseph Tung (left) and Chief Operating Officer Tien Wu attend an investors’ conference in Taipei on July 30.

Speaking at an investor conference in Taipei, COO Tien Wu said the company would increase its original US$2.5 billion CapEx budget by an additional US$300–400 million, driven by customer demand for leading-edge packaging and testing services, especially in AI, automotive, and industrial sectors.

“All of our advanced packaging capacity in Taiwan is fully utilized,” Wu said. “That’s why we are accelerating investment in equipment to support continued demand, particularly in high-end AI applications.”

Wu acknowledged a noticeable performance gap between AI and general sectors during the first half of 2025, but expects this to narrow in the second half. “From 2026 onward, the cycle should stabilize,” he added. “This puts pressure on ASE to scale faster, especially in Taiwan.”

Despite strong growth in demand, ASE did not revise its revenue guidance due to current capacity constraints, but still aims to grow annual revenue by US$1 billion over last year’s figures.

Wu emphasized that the uptrend in AI-driven semiconductor demand is expected to continue well into 2026 and beyond.