ASE raises 2026 capex to record $8.5B on AI packaging demand; LEAP revenue up 118% YoY

<cite index="72-2">ASE Technology Holding is experiencing an across-the-board surge in demand for its LEAP advanced packaging and testing business, driven by the AI wave, with the LEAP revenue target for 2026 raised to over $3.5 billion, an upward revision of approximately 10%, representing an annual growth rate of 118%</cite>. <cite index="77-1">ASE has raised its capex for a second time this year, from $7 billion to $8.5 billion, an increase of more than 20%, with the focus on expanding wafer testing</cite>. <cite index="72-2">Related equipment is expected to be installed in the fourth quarter, with volume shipments beginning in 2027</cite>.

<cite index="72-3">ASE's quarterly consolidated revenue reached approximately NT$173.66 billion (~$5.5 billion USD), a 2% decrease quarter-over-quarter but a 17% increase year-over-year, with after-tax net profit of NT$14.15 billion (~$450 million USD), up 87% year-over-year, with EPS of NT$3.24, a record high for the same period</cite>. <cite index="72-4">By application, communications accounted for 43%, computing at 27%, and automotive, consumer electronics and others combined for 30%, showing that advanced packaging and testing businesses have become the core source supporting ASE's revenue and profit margins as demand for AI and high-end chips expands</cite>.

<cite index="72-5">ASE is riding a structural growth trajectory, with all pointers leading to the same conclusion: advanced packaging has become an indispensable key link in the semiconductor industry</cite>. For architects planning GPU clusters: ASE's aggressive capex ramp—and TSMC's acknowledged capacity limits—means advanced packaging (especially multi-die integration) is now a **supply-side constraint** on AI infrastructure scaling. <cite index="76-2">TSMC dominates advanced packaging for customers like NVIDIA and AMD, and is likely to transfer more of the business to OSAT providers like ASE</cite>. This cascades cost and lead-time pressure upstream to every AI system integrator and cloud builder.