TAIPEI, Feb 7, 2026, 01:57 GMT+8 — The market has closed.
Shares of ASE Technology Holding Co Ltd jumped 7.2% on Friday, closing at T$304.50. The rally came as investors responded to the company’s optimistic outlook on advanced chip packaging and increased investment plans. 1
This shift is crucial since “advanced packaging”—the technique of stacking and linking multiple chips to enhance performance—is becoming a bottleneck for top-tier AI processors. Investors want to figure out who controls the capacity, wields pricing power, and holds the customer relationships to meet this demand.
Taiwan’s market is closed for the weekend, so all eyes shift to Monday’s open. The key question: will the earnings-driven rally stick, or will it unravel as traders lock in profits after a strong surge in chip-related stocks?
ASE said on Thursday’s earnings call that it expects its advanced packaging business to hit $3.2 billion by 2026—doubling current levels. Chief operating officer Tien Wu highlighted this outlook following the quarterly results. CFO Joseph Tung added the company plans to pump an extra $1.5 billion into machinery capital spending this year, on top of last year’s $3.4 billion. “We will remain aggressive in capex spending to support the strong business prospects for 2026 and beyond,” Tung said. 2
ASE disclosed unaudited Q4 net revenues of NT$177.9 billion and net income attributable to shareholders at NT$14.7 billion, with diluted EPS hitting NT$3.24. For the full year 2025, unaudited net revenues came in at NT$645.4 billion, alongside net income attributable to shareholders of NT$40.7 billion. 3
Traders will keep a close eye on the spending line. Capital expenditure — funds poured into equipment and facilities — can boost capacity and market share, but it also ramps up the pressure on utilisation if the cycle shifts.
ASE’s connection to Nvidia operates quietly in the background. Its Siliconware Precision Industries unit is a key packaging supplier for Nvidia’s AI chips, Reuters reported. That link keeps ASE closely tied to the ups and downs of the U.S. AI trade.
The field is packed. Alongside Amkor Technology, China’s JCET Group is vying for outsourced packaging and testing contracts. Meanwhile, Taiwan Semiconductor Manufacturing Co has moved aggressively into advanced packaging internally—all competing for the surge in AI and high-performance computing business.
The risk is straightforward: if demand for AI servers slows or clients cut back on inventories, costly packaging capacity could sit idle fast. Big spending plans that seem manageable in a tight market can squeeze margins once supply catches up.
Next week, attention will turn to whether ASE and its peers sustain their momentum, along with any broker note updates following the earnings call. Investors will also be watching closely to see if the ramp-up in capex is taken as a vote of confidence or a red flag.
Nvidia will report its fourth-quarter and full-year earnings on Feb. 25. For ASE, which highlights AI-chip packaging demand as a major growth factor, that earnings call will be a clear catalyst. 4
