Taiwan's ASE Tech raises 2026 capex by $2 billion on strong demand

By Wen-Yee Lee

TAIPEI, July ‌30 (Reuters) - Taiwan's ​ASE ​Technology Holding, the world's largest chip packaging and testing provider, said on Thursday it would ‌raise this year's capital expenditure by $2 billion to around $10.5 ⁠billion, driven by strong demand.

• Its previous capital expenditure guidance was $8.5 ‌billion.

• Of the additional $2 ‌billion, $1 billion will go toward facilities and $1 billion toward equipment.

• The company said it is building 13 greenfield ​sites this year and has another eight brownfield sites, where it acquired existing factories and is repurposing ⁠them to meet demand.

• The company said revenue from its leading-edge advanced packaging (LEAP) ​business is "tracking ahead" of its prior 2026 guidance of $3.5 billion.

• Chief Financial Officer Joseph Tung said ​the company aims to double ‌its LEAP business revenue in 2027, driven by strong business momentum.

• ASE said AI is ⁠enabling new applications and driving demand for new hardware, while boosting demand for industrial, power, connectivity and storage devices.

• The ⁠holding company's subsidiary Siliconware Precision Industries (SPIL) is a major packaging supplier for ​Nvidia's AI chips.

• ASE on Thursday also reported second-quarter revenue of T$191.06 billion ($5.88 billion), up 27% from a year earlier, while ‌net income was up 180% at T$21.068 billion.

• ASE's shares have risen 101.6% so far ‌this year, far outperforming a 37.87% rise in the ⁠broader market. The company's shares ‌closed up 1.2% ​on Thursday ahead of its earnings release.

(Reporting by Wen-Yee Lee; Editing by Clarence Fernandez AND dAVID ‌hOLMES)

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