TAIPEI, February 8, 2026, 09:03 (GMT+8) — The market is now closed.
- ASE Technology ended Friday at T$304.50, up 7.2%, capping off two choppy sessions.
- The company is now planning a record $7 billion in capital spending for 2026, making a wager that demand for AI-driven packaging remains robust.
- Traders are eyeing Monday’s follow-through, sizing up peer results over the week, and waiting for ASE’s next quarterly numbers in April.
Shares of ASE Technology Holding Co Ltd jumped 7.2% on Friday, closing at T$304.50. The chip packager rebounded after Thursday’s steep drop, as investors took a closer look at its increased capital plans connected to artificial intelligence demand.
This shift is significant: packaging and testing aren’t just an afterthought in chipmaking anymore. For top-tier AI chips, it’s advanced packaging that now faces the earliest bottlenecks—lead times can balloon fast if demand spikes.
ASE is right at the center of that pressure. Any mention of ramping up capacity tends to be read by investors not just as commentary on the company’s own orders, but also as a hint about conditions across the broader supply chain—whether things are starting to ease, or if constraints are still strong enough to support prices.
ASE plans to ramp up capital spending in 2026 to a record $7 billion, jumping about 27% from last year’s $5.5 billion. The company expects to channel nearly two-thirds of that toward advanced services that are seeing more demand than available supply. “The AI server cycle continues,” chief operating officer Tien Wu told reporters. Finance chief Joseph Tung projected that revenue from leading-edge services in 2026 should at least double, though he warned that tight capacity could limit further gains. Taipei Times
Management signaled some caution for the coming quarter. ASE is looking for first-quarter revenue to drop 5% to 7% from the December period, and it’s guiding for core packaging and testing revenue to slip 3% to 5%. The company described the seasonal slowdown as unusually strong.
The company is chasing growth with its so-called LEAP services — shorthand for leading-edge advanced packaging. That portfolio covers wafer-on-substrate processes, a crucial piece in chip-on-wafer-on-substrate (CoWoS) setups. CoWoS connects and stacks chips, speeding up data movement, which is essential for AI workloads.
ASE maintains that a shift in its business mix is boosting profitability. According to Tung, gross margin—a key profit metric after production expenses—will likely improve each quarter this year, potentially landing near the top end of the company’s 25% forecast range. He pointed to LEAP and testing, which he labeled as “accretive” to margins, becoming a larger slice of the business.
The company last week projected its advanced packaging segment will hit $3.2 billion in 2026—double what it is now—and said it’s budgeting another $1.5 billion in machinery spending this year, after committing $3.4 billion for 2025. Meanwhile, Reuters noted that Siliconware Precision Industries, part of ASE, counts as a key packaging supplier for Nvidia’s AI chips.
ASE’s latest earnings statement shows fourth-quarter net income for shareholders coming in at NT$14,713 million. Net revenues for the full year 2025 reached NT$645,388 million, with net income totaling NT$40,658 million for the year. The company reported basic earnings per share at NT$9.37 for 2025.
ASE’s ADRs (NYSE: ASX) in the U.S. wrapped up the session at $20.89, rising roughly 3% from where they finished previously.
But the rally isn’t without its risks. If tech stocks stumble, sentiment could take a knock. Investors are also eyeing margins, wary that heavy spending might outpace returns if AI order growth slows or customers hit pause after ramping up investments.
Taiwan’s market is back open Monday, and traders are eyeing whether Friday’s rally has legs. They’ll also be parsing Amkor Technology’s quarterly report, set to drop Feb. 9. As for ASE, its next big scheduled event: first-quarter earnings, expected on or about April 22.
