Financial Data and Key Metrics Changes - For Q3 2025, the company reported fully diluted EPS of $2.41 and basic EPS of $2.50, with consolidated net revenues of $168.6 billion, reflecting a 12% sequential increase and a 5% year-over-year increase [4][6] - Gross profit was $28.9 billion, with a gross margin of 17.1%, improving by 0.1% sequentially and 0.6% year-over-year [4][5] - Operating profit increased to $13.2 billion, up $3 billion sequentially and $1.7 billion year-over-year, with an operating margin of 7.8% [5][6] Business Line Data and Key Metrics Changes - The ATM business achieved record revenues of $100.3 billion, up 8% sequentially and 17% year-over-year, with a gross profit margin of 22.6% [8][10] - The EMS business reported revenues of $69 billion, increasing 17% sequentially but down 8% year-over-year, with an operating margin of 3.7% [12][13] Market Data and Key Metrics Changes - The company experienced a negative impact on margins due to foreign exchange fluctuations, estimating a 1.4% negative impact on holding company margins and a 2.1% impact on ATM margins sequentially [3][5] - The NT dollar strengthened by 4.6% against the US dollar during the quarter, affecting profitability [3] Company Strategy and Development Direction - The company is focusing on expanding its LEAP services, driven by AI demand, and expects to reach $1.6 billion in revenue for LEAP by the end of the year [17][20] - The company plans to increase capital expenditures to support growth in both AI and non-AI chip production, indicating a commitment to maintaining a competitive edge [20][21] Management's Comments on Operating Environment and Future Outlook - Management anticipates a more stable NT dollar environment in Q4 2025, projecting a 1% to 2% revenue growth quarter-over-quarter [4][19] - The company is confident in achieving over 20% year-over-year revenue growth in US dollar terms for ATM in 2025, driven by strong market recovery [20] Other Important Information - The company reported a net non-operating gain of $0.8 billion, primarily from foreign exchange hedging activities [6] - Total interest-bearing debt increased to $295.7 billion, largely due to a $50 billion syndicated loan for capital expenditures [15] Q&A Session Summary Question: Update on LEAP revenues and margin contribution - Management confirmed they are on track to reach the $1.6 billion target for LEAP this year, with strong momentum expected to continue into 2026 [24][26] Question: Pricing environment for advanced packaging - The company indicated that pricing remains resilient, with adjustments made based on current market conditions [30][31] Question: Update on US operations and competition - Management is evaluating investment opportunities in the US but has not made any decisions yet [34][35] Question: Final test business update - The company is expanding its test capacity and expects meaningful revenue from next-generation AI chips in late 2026 [38][39] Question: CapEx to revenue outlook - Management noted that while CapEx is increasing, the exact revenue generation timeline post-investment remains uncertain [94]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Third Quarter 2025 Earnings Release ASE Technology Holding 30 October, 2025 Safe Harbor Notice This presentation contains "forward-looking statements" within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Although these forward-looking statements, which may include stat ...

Core Insights - ASE Technology Holding Co., Ltd. reported unaudited net revenues of NT$168,569 million for Q3 2025, representing a year-over-year increase of 5.3% and a sequential increase of 11.8% [1] - The net income attributable to shareholders for the quarter was NT$10,870 million, up from NT$9,733 million in Q3 2024 and NT$7,521 million in Q2 2025 [1] - Basic earnings per share for the quarter were NT$2.50 (US$0.168 per ADS), compared to NT$2.25 for Q3 2024 and NT$1.74 for Q2 2025 [1] Financial Performance - Total non-operating income for the quarter was NT$775 million [3] - Cost of revenues was NT$139,692 million, up from NT$125,063 million in Q2 2025 [5] - Gross margin increased to 17.1% in Q3 2025 from 17.0% in Q2 2025, while operating margin improved to 7.8% from 6.8% [5] - Income before tax was NT$13,976 million, compared to NT$9,255 million in Q2 2025 [5] Revenue Breakdown - Net revenues from packaging operations, testing operations, EMS operations, and others represented approximately 47%, 11%, 41%, and 1% of total net revenues, respectively [5] - Net revenues for ATM operations were NT$100,289 million, up by 16.9% year-over-year and 8.3% sequentially [11] - Net revenues for EMS operations were NT$69,022 million, down by 8.4% year-over-year but up by 17.4% sequentially [13] Cost Structure - Raw material costs totaled NT$83,106 million, representing 49% of total net revenues [5] - Labor costs amounted to NT$18,525 million, accounting for 11% of total net revenues [5] - Depreciation, amortization, and rental expenses totaled NT$15,650 million for the quarter [5] Customer Concentration - The five largest customers accounted for approximately 41% of total net revenues in Q3 2025, down from 43% in Q2 2025 [9] - Top 10 customers contributed 58% of total net revenues in Q3 2025, compared to 60% in Q2 2025 [9] Capital Expenditures - Equipment capital expenditures in Q3 2025 totaled US$779 million, with US$534 million allocated to packaging operations [9]

Core Viewpoint - ASE Technology Holding Co., Ltd. (ASX.US) shares rose over 6.7% to $14.26 in pre-market trading, reaching a new high after the announcement of its upcoming Q3 earnings report on October 30 [1] Financial Performance - The total sales for Q3 reached NT$168.57 billion, representing a year-on-year increase of 5.3%, surpassing market expectations of NT$162.64 billion [1] - The market anticipates earnings per share (EPS) of NT$4.551, which reflects a year-on-year growth of 6.8% [1]

Investment Rating - The industry investment rating is "Outperform the Market" (maintained) [3][36] Core Viewpoints - The report highlights that artificial intelligence (AI) is driving a semiconductor supercycle, with significant investments and collaborations in the sector, such as Anthropic's partnership with Google, which includes a deal for up to one million custom TPU chips [3] - Major memory manufacturers like Samsung and SK Hynix are expected to raise prices of DRAM and NAND storage products by up to 30% in response to the surge in AI-driven demand [3] - Amphenol reported a 53.35% year-on-year increase in revenue for Q3 2025, driven by the growing demand for data center solutions [3] - The report anticipates a substantial increase in overall computing power by 2035, predicting a growth of up to 100,000 times, emphasizing the transformative potential of general artificial intelligence [3] Summary by Sections 1. Market Review - The electronic industry saw a weekly increase of 8.49% from October 20 to October 24, with the communication sector leading at 11.55% [6] - The Philadelphia Semiconductor Index rose from 6,885.03 points to 6,976.94 points during the same period, indicating a positive trend since April 2025 [11] 2. Industry High-Frequency Data Tracking 2.1 Panel Prices - TV panel prices are expected to stabilize due to healthy inventory levels, with no significant changes anticipated for various sizes [17] 2.2 Memory Prices - Prices for DDR5 and DDR4 memory chips have shown an upward trend, with DDR5 increasing from $10.457 to $12.615 and DDR4 from $24.333 to $24.721 between October 20 and October 24 [21]

Core Insights - ASE Technology Holding Co., Ltd. and Analog Devices, Inc. have announced a strategic collaboration involving the acquisition of Analog Devices Sdn. Bhd. and its manufacturing facility in Penang, Malaysia [1][2] - The acquisition aims to enhance ASE's global manufacturing capabilities and operational flexibility while establishing a long-term supply agreement for manufacturing services [4][6] Company Overview - ASE Technology Holding Co., Ltd. is a leading provider of semiconductor manufacturing services, focusing on assembly, testing, materials, and system designs [5] - Analog Devices, Inc. is a global semiconductor leader with over $9 billion in revenue for FY24, specializing in solutions that bridge the physical and digital worlds [7] Strategic Collaboration Details - ASE plans to purchase 100% of the equity of Analog Devices Sdn. Bhd. and its Penang facility, which spans over 680,000 square feet [2][3] - The collaboration includes co-investment in upskilling the Penang facility to meet increasing customer and supply chain demands [2][4] Future Expectations - The parties expect to finalize definitive agreements in Q4 2025, with the transaction anticipated to close in the first half of 2026, pending regulatory approvals [4][6]

Key Points - NIO-SW (09866) rose over 4% as CEO Li Bin emphasized the necessity of achieving profitability in Q4 during an internal meeting on October 17 [1] - COSCO Shipping Energy (01138) increased over 4% due to successful capital increase enhancing future shipping capacity and strategic value in international shipping competition [1] - Datang New Energy (01798) fell over 4% despite a more than 10% increase in power generation in the first nine months, influenced by adjustments in VAT policies for wind power [1] - Laopuhuang Gold (06181) dropped over 6%, although it still recorded a cumulative increase of over 10% this month, with a price adjustment announcement set for October 26 [1] - Jitu Express-W (01519) rose over 3% as Q3 parcel volume exceeded market expectations, with anti-involution policies likely to restore company profits [1] - JD Health (06618) increased over 4% as institutions expect enhanced drug sales to benefit overall gross margin [1] - Derin Holdings (01709) rose over 3% after announcing plans to acquire 2,995 BM mining machines from Bitmain, strengthening its Bitcoin mining business [1] - Sanhua Intelligent Control (02050) increased over 6% after announcing an increase in the share repurchase price limit, with recent catalysts in the robotics sector [1] - Bilibili-W (09626) rose over 3% as Q3 advertising performance is expected to continue, with a new card game set to contribute additional revenue early next year [1] - Alibaba-W (09988) rose over 4% after partnering with Ant Group to acquire a 13-story commercial building in Causeway Bay for HKD 7.2 billion [2] US Market Highlights - CSX Transportation (CSX.US) rose 1.69% as CEO Steve Angel indicated a focus on strategic opportunities and reevaluating aspects of railroad operations [3] - Novo Nordisk (NVO.US) fell 3.07% and Eli Lilly (LLY.US) dropped 2.02% following Trump's comments on potential price reductions for the weight loss drug Ozempic [3] - American Lithium (LAC.US) fell 8.12% after JPMorgan downgraded its rating from "neutral" to "underweight," citing overvaluation concerns [3] - Ford Motor Company (F.US) rose 1.53% as the NHTSA announced a recall of nearly 625,000 vehicles due to safety issues [3] - ASE Technology Holding (ASX.US) continued to rise 1.11% with the expansion of its K18B advanced packaging plant expected to commence production in Q1 2028 [3] - NetEase (NTES.US) fell 0.26% after announcing the discontinuation of its mobile game "The Lord of the Rings: Rise to War" [3] - Oracle (ORCL.US) fell 6.93% as it projected a 35% gross margin for its AI infrastructure plans during the Oracle AI World conference [4] - Hims & Hers Health (HIMS.US) dropped 15.84% after launching affordable treatment options for perimenopausal and menopausal individuals [4] - Gold stocks generally declined, with Harmony Gold (HMY.US) down 8.86% and Kinross Gold (KGC.US) down 8.99%, amid a significant drop in spot gold prices [4]

Core Viewpoint - ASE Technology Holding Co. Ltd. (NYSE:ASX) has reached a new all-time high, driven by strong demand in the semiconductor sector, particularly from the artificial intelligence (AI) industry [1][3]. Group 1: Stock Performance - ASE Technology's stock price peaked at $12.84 during intra-day trading, ultimately closing up by 5.45% at $12.58 [2]. - The company's stock performance is part of a broader trend where several semiconductor stocks are experiencing significant gains amid market volatility [1]. Group 2: Business Developments - ASE Technology's recent rally was bolstered by its subsidiary's acquisition of a plant engineering project from Acter Group for T$1 billion (approximately $32.6 million) as part of its expansion strategy [3]. - The company has initiated the construction of a new plant in Kaohsiung, with an investment of $579 million aimed at enhancing production capabilities for advanced 3D chip on wafer on substrate (CoWoS) IC packaging services. This project is expected to create nearly 2,000 new jobs and is scheduled for completion in the first quarter of 2028 [4].

Core Insights - ASE Technology Holding Co., Ltd. (ASX.US) has seen a pre-market increase of approximately 2%, following a more than 7% rise during the previous trading session, reaching a historical high [1] - The company reported September revenue of NT$60.56 billion, reflecting a year-on-year growth of 9%, while third-quarter revenue reached NT$168.57 billion, marking a 5.3% increase compared to the previous year [1] - ASE's new advanced packaging plant, K18B, has commenced expansion, with production expected to start in the first quarter of 2028, which will create nearly 2,000 jobs [1] Financial Performance - September revenue: NT$60.56 billion, up 9% year-on-year [1] - Third-quarter revenue: NT$168.57 billion, up 5.3% year-on-year [1] - Closing price on October 16: $12.580, with a market cap of $27.337 billion [1] Stock Performance - Pre-market price on October 17: $12.790, an increase of 1.67% [1] - Historical high reached: $12.840 [1] - 52-week range: Lowest at $6.699 and highest at $12.840 [1]