Chip Assembler ASE Sales to Double
ASE, the world's largest chip assembler, expects its revenue from advanced packaging to double to $3.2 billion in 2026. The growth is driven by intense demand from AI chipmakers, prompting the company to plan significant capital expenditure increases to expand capacity.
- The global advanced semiconductor packaging market was valued at $33.5 billion in 2025 and is projected to grow to $95.3 billion by 2035. This growth is largely driven by the adoption of AI accelerators that require high-bandwidth memory (HBM) integration. - To meet this demand, ASE is significantly increasing its capital expenditure. The company plans to add $300 to $400 million to its existing $2.5 billion budget for 2025 and anticipates spending over $6 billion in 2026. - A key factor in this expansion is the trend of foundries like TSMC outsourcing more of their advanced packaging needs. ASE is expected to be a primary beneficiary of this shift, particularly for mid- to low-tier CoWoS (Chip-on-Wafer-on-Substrate) processes. - ASE is not only expanding its capacity but also its global footprint, with a new plant in Malaysia set to begin operations and potential expansion in the United States being evaluated in response to customer requests and tariff policies. - The company is a leader in a variety of advanced packaging technologies, including flip-chip, fan-out wafer-level packaging (FOWLP), and System-in-Package (SiP). It is also investing in panel-level packaging, which uses larger rectangular panels instead of round wafers to lower costs. - ASE's main competitors in the outsourced semiconductor assembly and test (OSAT) market include Amkor Technology and JCET Group. In 2024, ASE held a dominant 44.6% market share among the top OSAT providers. - The demand for advanced packaging extends beyond AI data centers to include automotive, industrial automation, and aerospace sectors. In 2024, over 72% of AI chip shipments utilized some form of advanced packaging. - Key customers driving this demand for ASE's services include major AI chipmakers like Nvidia, AMD, and Amazon. ASE's subsidiary, SPIL, is involved in Nvidia's AI infrastructure project in Arizona.
