ASEH Ends 2025 on High Note, Signals Robust Chip Market Ahead

TAIPEI, Taiwan – January 09, 2026 – ASE Technology Holding Co., Ltd. (ASEH), a linchpin in the global semiconductor supply chain, has announced impressive full-year financial results for 2025, reinforcing signs of a vigorous and sustained recovery across the technology sector. The company reported consolidated net revenues of NT$645.4 billion (US$20.8 billion) for the year, an 8.4% increase in local currency compared to 2024.

While the overall growth is a positive indicator, the standout performance came from the company's core Assembly, Testing, and Material (ATM) business. This segment, which provides the critical services that turn silicon wafers into finished microchips, saw its revenues surge by a remarkable 19.4% year-over-year to NT$389.2 billion. This powerful growth in the company's foundational business serves as a key bellwether for the health of the entire semiconductor industry, signaling that the demand for advanced computing power is not just recovering, but accelerating into the new year.

A Bellwether for a Booming Market

ASEH's strong finish to 2025 provides concrete evidence supporting bullish forecasts for the global semiconductor market. After a period of recalibration in previous years, industry analysts projected the market to grow by over 22% in 2025, with some estimates putting total sales near US$772 billion. ASEH's performance, particularly in the fourth quarter where consolidated revenues grew 9.6% year-over-year, aligns perfectly with this narrative of a widespread rebound.

As a leading Outsourced Semiconductor Assembly and Test (OSAT) provider, ASEH's factories are a crucial barometer of end-market demand. The significant uptick in its ATM business suggests that chip designers and manufacturers are ramping up production to meet the needs of burgeoning technology sectors. The growth is not just a statistical anomaly; it reflects a fundamental shift in the industry where the packaging and testing of chips have become as critical as their initial design.

Looking ahead, forecasts for 2026 are even more optimistic, with some projections suggesting the global semiconductor market could approach the historic US$1 trillion mark. ASEH's results, especially the 25.9% year-over-year revenue jump in its ATM business for the month of December alone, indicate that the momentum carrying the industry into 2026 is substantial.

The Engine Room: Advanced Packaging Fuels Growth

The driving force behind ASEH's outsized success in its ATM division is the relentless demand for advanced packaging technologies. The era of simply shrinking transistors, as dictated by Moore's Law, is giving way to an age of sophisticated integration. Advanced packaging allows for the combination of multiple chips—or "chiplets"—from different manufacturing processes into a single, powerful, and efficient unit. This technique, known as heterogeneous integration, is essential for the next generation of electronics.

The primary catalyst for this demand is the explosive growth in Artificial Intelligence (AI) and High-Performance Computing (HPC). AI accelerators, which power everything from large language models in data centers to smart features in consumer devices, require complex packaging solutions to integrate processors with high-bandwidth memory (HBM). This has turned advanced packaging capacity into a critical, and often constrained, resource in the supply chain. ASEH's 23.2% full-year growth in its ATM business when measured in U.S. dollars underscores its successful capture of this high-value market.

This trend is not unique to ASEH. Its main competitor, Amkor Technology, also reported strong results driven by record demand for advanced packaging in communications and computing. However, ASEH's full-year ATM growth appears exceptionally robust, solidifying its position at the forefront of the OSAT industry. According to market intelligence, leading OSAT players like ASEH are well-positioned to significantly increase their market share in the advanced packaging space over the next decade, as the complexity of chip integration continues to rise.

Navigating Global Currents

ASEH's financial success unfolds against a complex backdrop of global economic and geopolitical shifts. As a Taiwanese technology titan, the company's performance is intertwined with international trade dynamics, currency fluctuations, and the strategic importance of the island's semiconductor ecosystem.

A closer look at the revenue figures reveals the impact of foreign exchange rates. For the full year, consolidated revenues grew 8.4% in New Taiwan dollars (NTD) but 11.8% in U.S. dollars. This disparity indicates that a strengthening U.S. dollar relative to the NTD during the reporting period provided a tailwind to the company's USD-denominated results, a common factor for international technology firms reporting in multiple currencies.

More broadly, the results highlight the resilience and central role of Taiwan's tech industry in the global supply chain. Amid ongoing efforts by nations to onshore semiconductor manufacturing, the highly specialized and capital-intensive nature of advanced packaging ensures that established leaders like ASEH remain indispensable partners for the world's leading technology companies. The company's ability to thrive demonstrates its strategic positioning in a sector that has become foundational to economic competitiveness and national security.

Outlook and Industry Investment

The strong 2025 performance has bolstered confidence within ASEH and across the industry for continued growth. The company had previously signaled its expectation for ATM revenue to grow over 20% for the year, a target its results have come close to achieving. More importantly, ASEH is actively preparing for future demand by increasing capital expenditures to expand its advanced packaging and testing capacity into 2026.

This forward-looking investment strategy is mirrored by competitors, who are also pouring billions into new facilities to alleviate packaging bottlenecks and capture future growth. These massive capital outlays are a direct response to long-term market forecasts that predict the advanced packaging market will far outpace the growth of the overall semiconductor industry. Some analysts project the segment could grow at a compound annual rate of over 25% through the next decade, driven by the proliferation of AI from the data center to consumer edge devices.

By reporting such strong growth, particularly in the high-demand ATM segment, ASEH is not just closing a successful year; it is signaling the robust health of the innovation pipeline for 2026 and beyond. This strategic positioning highlights the industry's focus on securing capacity for the next wave of technological innovation.