Core Viewpoint - ASE Technology Holding Co., Ltd. is increasing its capital expenditure to a record $7 billion in 2023, up approximately 27% from $5.5 billion in 2022, to meet the demand for AI applications and broader recovery in non-AI sectors [2] Group 1: Financial Performance and Projections - ASE expects its advanced packaging (LEAP) service revenue to at least double to $3.2 billion this year, compared to $1.6 billion last year [3] - The company anticipates a 25% gross margin for the year, with quarterly gross margins expected to rise to the upper limit of this range [4] - ASE's net profit surged 58% year-on-year to NT$14.71 billion, marking the highest level in three quarters [4] Group 2: Market Demand and Trends - The AI server cycle is ongoing, primarily driven by hyperscale data centers and developments in data centers [3] - ASE is seeing increased design perspectives in robotics, drones, automotive, and smart manufacturing equipment [3] - The overall market growth momentum from last year is expected to continue this year, particularly in AI applications in automotive and industrial sectors [4] Group 3: Strategic Investments and Agreements - ASE's capital investments are based on optimistic expectations for medium to long-term profitability [4] - The company has established long-term service agreements with clients to manage fluctuations in material costs [4]