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- **LEAP Revenue Doubles**: 2026 LEAP services to reach $3.2 billion, up from $1.6 billion in 2025, driven by AI server packaging demand.
- **Gross Margin Expansion**: Q4 2025 gross margin 19.5%, set to trend towards 24-25% in 2026 as utilization improves. Second half 2026 to hit upper end of range.
- **Aggressive CapEx**: $3.4 billion machinery spend in 2026, 2/3 for leading-edge services. Global expansion with $2.1 billion in facilities investments.
- **Mainstream Recovery**: IoT, automotive, and industrial sectors growing 10%+ in 2026, supported by AI proliferation and automotive electrification.
- **Global Expansion**: Penang factory for automotive/robotics, Korea/Philippines for non-Taiwan wafer customers. Taiwan remains core, but diversification reduces risk.

**【CEO Summary Section】**
- **Long-term Outlook**: Dr. Tien Wu highlighted a 2-3 year AI-driven growth cycle, emphasizing ASE's leadership in advanced packaging (LEAP) and testing. The company expects LEAP revenue to double to $3.2 billion in 2026, with 75% from packaging and 25% from testing.
- **Taiwan Plus One Strategy**: ASE is expanding globally, prioritizing Penang for automotive and robotics, while maintaining Taiwan's manufacturing dominance. New facilities include a $2.1 billion investment in buildings and land.
- **Market Recovery**: Mainstream IoT, automotive, and industrial sectors are recovering, with 2026 growth similar to 2025. AI proliferation and automotive demand are key drivers.

**【CFO Financial Commentary】**
- **Q4 2025 Results**: Revenue $177.9 billion (+6% QoQ, +10% YoY), EPS $3.24. Gross margin 19.5% (up 2.4pts QoQ), driven by higher ATM utilization and NT dollar depreciation.
- **Full Year 2025**: Revenue $1.6 trillion (+8%), ATM up 20%, LEAP revenue $1.6 billion (+167% YoY). Operating profit $50.8 billion (+25%), margin 7.9% (up 1.3pts YoY).
- **2026 Guidance**: LEAP revenue to double to $3.2 billion. Gross margin to trend towards upper end of structural range (24-25%), with sequential improvements. CapEx $3.4 billion in machinery, $2.1 billion in facilities.

**【Q&A Highlights】**
- **LEAP Growth**: CFO Joseph Tung confirmed LEAP revenue to comfortably exceed $3.2 billion in 2026, with full process packaging contributing 10% of LEAP by year-end. Demand exceeds capacity, but quality and delivery remain priorities.
- **Gross Margin Trajectory**: Q1 2026 gross margin 24-25%, improving sequentially with utilization. Second half to reach upper end of range. Long-term margin expansion driven by scale and automation.
- **EMS Strategy**: Shifting focus to AI, server, and optical solutions. 2026 revenue similar to 2025, with operating margin stabilization. Consumer electronics downsizing to prioritize high-margin AI adjacents.
- **CapEx Allocation**: 2/3 of $3.4 billion machinery spend on leading-edge services. Building automation and smart factory infrastructure to support multi-year growth. No immediate ROIC targets, but investments are margin-accretive.
- **Currency Impact**: NT dollar depreciation positively impacts margins, but exchange rate volatility remains a risk. Hedging strategies mitigate but don't eliminate effects.

ASE Technology Holding Co., Ltd. (ASX) Q4 2025 Earnings Call Transcript

- **Revenue and Margin Growth**: Q3 revenue up 12% QoQ, with Q4 guidance for 1-2% growth and margin improvements of 70-100 bps.
- **LEAP Expansion**: ATM revenue up 8% QoQ, with LEAP services driving 2025 growth over 20% YoY. Q4 LEAP revenue to increase by TWD 1 billion.
- **CapEx Intensification**: Full-year CapEx to rise by hundreds of millions for wafer probing and 2026 capacity, with Q3 machinery spending at $779 million.
- **Test Dominance**: Test services growing 30% YoY, outpacing packaging. Final test revenue expected in late 2026 for next-gen AI chips.

**【CEO Summary Section】**
- **Revenue Growth and Margin Improvement**: Q3 2025 revenue reached TWD 168.6 billion (12% QoQ, 5% YoY), with consolidated gross margin of 17.1%. Foreign exchange (FX) negatively impacted margins by 1.4% QoQ and 2.4% YoY. Q4 guidance projects 1-2% QoQ revenue growth, with gross and operating margins improving by 70-100 bps each.
- **LEAP Momentum**: ATM revenue grew 8% QoQ to TWD 100.3 billion, driven by LEAP services. Full-year ATM revenue expected to exceed targets, growing over 20% YoY in USD. Q4 ATM revenue guidance is 3-5% QoQ growth.
- **CapEx Expansion**: Machinery CapEx for Q3 was $779 million, with an additional $700 million allocated for facilities. Full-year CapEx will increase by hundreds of millions to support wafer probing and 2026 capacity ramps.

**【CFO Financial Commentary】**
- **Profitability Metrics**: Q3 operating profit was TWD 13.2 billion (7.8% margin), up 3% QoQ and 1.7% YoY. Net income was TWD 10.9 billion, with an effective tax rate of 19%. FX hedging and interest expenses impacted nonoperating gains.
- **Segment Performance**: ATM gross margin was 22.6% (0.7% QoQ improvement), while EMS operating margin was 3.7% (1.1% QoQ improvement). Test services outpaced assembly, growing 11% QoQ and 30% YoY.
- **FX Impact**: NT dollar appreciation reduced holding company and ATM margins by 1.4/2.1% QoQ and 2.4/3.6% YoY. Q4 exchange rate assumption is TWD 30.4/USD.

**【Q&A Highlights】**
- **LEAP and Pricing**: LEAP revenue on track to reach TWD 1.6 billion in 2025, with 2026 growth exceeding TWD 1 billion. Pricing remains resilient, with test services leading growth. Mainstream packaging pricing is stable.
- **U.S. Operations**: Exploring U.S. investments but prioritizing economic viability. No decision yet, as geopolitical risks and infrastructure challenges remain.
- **Test Market Share**: Expanding wafer probing capacity for AI chips, with final test revenue expected in late 2026. Test business growth outpaces packaging (2x QoQ).
- **Supply Chain Risks**: Substrate shortages may impact 2026 growth, but ASE is working with customers to secure supplies. FX stability expected in Q4.

ASE Technology Holding Co., Ltd. (ASX) Q3 2025 Earnings Call Transcript

- **Revenue Momentum**: H1 2025 ATM revenue up 18% YoY, with leading-edge packaging/testing at 10% of ATM (vs. 6% in 2024). Testing revenue grew 31% YoY, driven by AI/HPC demand.
- **Q3 Guidance**: ATM revenue +9-11% QoQ, EMS revenue +18-20% QoQ, despite NT dollar appreciation reducing margins by 1.5-2.2ppts.
- **Long-Term Vision**: Targeting USD 1 billion increase in leading-edge packaging/testing revenue in 2025, with confidence in mid-20s margins by 2026 through automation, cost control, and AI/HPC expansion.
- **Challenges & Risks**: Currency volatility, machine delivery delays, and execution complexity, but management emphasizes strategic investments and customer partnerships to drive recovery.

**【CEO Summary Section】**
- **Revenue Growth**: Unconsolidated revenue grew 9% YoY in H1 2025, with ATM (Advanced Testing and Manufacturing) revenue up 18% YoY. Leading-edge advanced packaging and testing accounted for over 10% of ATM revenue in H1 2025, up from 6% in 2024. Testing revenue grew 31% YoY in H1, driven by increased turnkey and leading-edge test demand.
- **Market Outlook**: Q3 2025 ATM revenue expected to grow 9-11% QoQ, with Q4 2025 targeting sequential growth. The company aims to increase leading-edge advanced packaging and testing revenue by USD 1 billion in 2025, maintaining mid- to high-single-digit growth in the general segment.
- **Strategic Investments**: Machinery CapEx of USD 1.9 billion and factory automation spending of USD 0.9 billion in H1 2025. Expansion plans include accelerating 2025 CapEx by USD 300-400 million for leading-edge capacity, with a focus on Taiwan's full utilization and overseas optimization.
- **Challenges**: NT dollar appreciation (4.9% Q2) negatively impacted margins, with a 0.3-0.45% margin reduction per 1% NT dollar appreciation. Execution risks include machine delivery delays and regulatory changes.

**【CFO Financial Commentary】**
- **Q2 2025 Financials**: Consolidated revenue of USD 15.1 billion (+7% YoY), gross profit of USD 2.6 billion (17% margin), and net income of USD 0.8 billion. ATM revenue grew 19% YoY to USD 9.3 billion, with gross margin of 21.9% (down 0.7ppts QoQ due to currency). EMS revenue declined 7% YoY, but operating margin improved 0.5ppts QoQ to 9.4%.
- **Margin Impact**: Foreign exchange reduced gross margin by 1.5ppts QoQ and 1.0ppts YoY. Excluding currency, ATM gross margin would have been 2.2ppts higher. Operating expenses rose 10% YoY due to R&D and labor costs.
- **Q3 2025 Guidance**: Consolidated revenue +12-14% QoQ, ATM revenue +9-11% QoQ, and EMS revenue +18-20% QoQ. Gross margin expected to decline 1.0-1.2ppts QoQ, with ATM gross margin ~26% (excluding currency impact).
- **Long-Term Outlook**: Confidence in returning to mid-20s structural margins in 2026 through efficiency improvements, cost control, and leading-edge business expansion.

**【Q&A Highlights】**
- **Market Dynamics**: Strong demand for HPC/AI offset general market weakness, with testing revenue growing faster than packaging. Q2 2025 saw double-digit growth across all segments, including wireless, industrial, and automotive.
- **Advanced Packaging Strategy**: Capacity constrained in Taiwan, with overseas expansion focused on 1-2 strategic locations. Full-process CoWoS/FOCoS production ramping, targeting ASIC and CPU customers in 2026.
- **Testing Growth**: Testing revenue to approach 20% of ATM by Q4 2025, with final test (burn-in/system-level) starting in Q4. Testing's margin-accretive nature supports long-term margin recovery.
- **Pricing & Execution**: Emphasis on technical strength and long-term partnerships over short-term pricing. Challenges include machine delivery delays and currency volatility, but execution progress is viewed as critical to success.


ASE Technology Holding Co., Ltd. (ASX) Q2 2025 Earnings Call Transcript

- **Revenue Growth**: Q1 revenue up 12% YoY, driven by 17% YoY growth in ATM and 5% YoY in EMS. 
- **LEAP Expansion**: LEAP services now 10% of ATM revenue, up from 6% in 2024. 
- **Test Business**: Targeting 20% of ATM revenue by year-end, with heavy CapEx on AI chip testing. 
- **U.S. Strategy**: Evaluating LEAP fabs in the U.S., though details pending. 
- **Gross Margin**: Sequential improvement expected, with second-half margins returning to structural levels. 
- **Long-Term Vision**: 45% CAGR for AI-related demand; investing in 3D IC and panel-level packaging.

**【Management Opening Remarks】**
- Q1 2025 revenues exceeded expectations, driven by accelerated seasonality and inventory builds ahead of potential tariffs. ATM revenue grew 17% YoY, while EMS revenue rose 5% YoY despite seasonal declines.
- LEAP services accounted for 10% of ATM revenue (vs. 6% in 2024), with test business growing 2% QoQ despite seasonal weakness. Utilization rates were strong, especially for advanced platforms.

**【Financial Highlights】**
- Consolidated revenue: NT$148.7 billion (12% YoY growth). Gross margin: 16.8% (up 1.1ppts YoY). Operating profit: NT$9.7 billion (2.2 billion YoY increase).
- ATM segment: Revenue NT$86.7 billion (17% YoY growth), gross margin 22.6% (up 1.6ppts YoY). EMS segment: Revenue NT$62.3 billion (5% YoY growth), operating margin 2.6%.
- EBITDA: NT$27.6 billion. Capital expenditures: NT$892 million (US$892M) in Q1, with focus on packaging and testing.

**【Q&A Highlights】**
- **Test Business Expansion**: Targeting 19-20% of ATM revenue by year-end. Heavy CapEx on test (NT$500M in Q1) for AI chip testing, with returns comparable to LEAP. 
- **U.S. Investments**: Evaluating LEAP fabs in the U.S. for customer support, though details on timing and scale remain unclear.
- **Tariff Impact**: Some pull-in demand in Q1, but limited visibility for second half. Gross margin expected to improve sequentially, with second-half margins returning to structural levels.
- **Long-Term Outlook**: Confident in 45% CAGR for AI-related demand. Investing in 3D IC and panel-level packaging for future growth, with pilot lines scheduled for late 2025.


ASE Technology Holding Co., Ltd. (ASX) Q1 2025 Earnings Call Transcript

- **Advanced Packaging Surge**: 2025 leading-edge packaging and testing revenues to grow by USD 1 billion (10% of total growth), driven by 75% packaging and 25% testing.
- **Gross Margin Recovery**: ATM gross margin to reach 24%-30% by H2 2025, up from 22.5% in 2024.
- **Test Business Acceleration**: Test revenue to outpace packaging in 2025, targeting 25% of total revenue with stable 35%+ margins.
- **Regulatory Headwinds**: U.S. BIS restrictions may delay Chinese client orders, but ASE is on the white list and investing USD 2 billion in smart factories globally.


**【COO Business Overview】**
- **2024 Revenue Growth**: Consolidated revenues increased 2% YoY, with ATM (Advanced Testing and Manufacturing) up 3% YoY. Leading-edge advanced packaging and testing revenues reached USD 600 million (6% of ATM), up from USD 250 million in 2023.
- **Testing Momentum**: Testing revenue grew 9% YoY in 2024, with Q4 growth at 18% YoY. Expected acceleration in 2025 as turnkey and pure testing services expand.
- **CapEx Expansion**: Machinery CapEx of USD 1.9 billion in 2024, up USD 1 billion YoY, driven by advanced packaging and testing. 2025 CapEx to be annualized at Q4 2024 levels, with 60% for leading-edge packaging and over 30% for testing.

**【CFO Financial Highlights】**
- **Q4 2024 Results**: Fully diluted EPS of TWD 2.07, net revenues up 1% YoY. Gross margin 16.4%, operating expenses increased due to R&D and labor costs. Operating profit TWD 11.2 billion, down 0.3% sequentially.
- **2024 Full Year**: ATM revenue up 3%, EMS revenue flat. Gross margin 16.3% (up 0.5ppts YoY), operating margin 6.6% (down 0.3ppts YoY). Net income TWD 32.5 billion, up 2% YoY.
- **2025 Outlook**: ATM gross margin to recover to 24%-30% by H2 2025. Operating expenses to rise in absolute terms but stabilize as revenue grows. Effective tax rate expected below 20%.

**【Q&A Key Takeaways】**
- **Advanced Packaging Growth**: 2025 leading-edge packaging and testing revenues to increase by USD 1 billion (10% of growth). 75% from packaging, 25% from testing. Full-year ATM revenue to outgrow the logic semiconductor market.
- **U.S. BIS Regulations**: ASE is on the white list, but capacity constraints and regulatory clarity may delay full utilization. Working with foundry partners to meet demand.
- **Test Business Expansion**: Test revenue to grow faster than packaging in 2025. Target for test to reach 25% of revenues in mid-term, with stable 35%+ gross margins.
- **Geopolitical Risks**: Smart factory investments in Taiwan and overseas to ensure flexibility. Yield and cost efficiency remain critical for overseas expansion.


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