On “Taiwan Plus One,” Wu said ASE is expanding its footprint outside Taiwan—particularly in Penang—to serve customers whose wafers may not be produced in Taiwan, with a focus on automotive and potential future robotics applications. He added that Korea and the Philippines are also part of the footprint strategy, though Penang is expected to be the primary ramp region outside Taiwan.Wu said the company expects the “mainstream” businesses—IoT, automotive, and general industrial—to recover better in 2026 than ...

ASE Technology (NYSE:ASX) Q4 2025 Earnings call February 05, 2026 02:00 AM ET Company ParticipantsAlan Patterson - AuthorGokul Hariharan - Managing DirectorJoseph Tung - CFOKen Hsiang - Head of Investor RelationsTien Wu - COOConference Call ParticipantsCharlie Chan - Executive Director and Technology Research AnalystLaura Chen - AnalystSunny Lin - Stock AnalystNone - AnalystNone - AnalystKen HsiangHello, I am Ken Hsiang, the Head of Investor Relations for ASE Technology Holding. Welcome to our fourth quarte ...

ASE Technology (NYSE:ASX) Q4 2025 Earnings call February 05, 2026 02:00 AM ET Company ParticipantsAlan Patterson - AuthorGokul Hariharan - Managing DirectorJoseph Tung - CFOKen Hsiang - Head of Investor RelationsTien Wu - COOConference Call ParticipantsCharlie Chan - Executive Director and Technology Research AnalystLaura Chen - AnalystSunny Lin - Stock AnalystNone - AnalystNone - AnalystKen HsiangHello, I am Ken Hsiang, the Head of Investor Relations for ASE Technology Holding. Welcome to our fourth quarte ...

ASE Technology (NYSE:ASX) Q4 2025 Earnings call February 05, 2026 02:00 AM ET Speaker5Hello, I am Ken Hsiang, the Head of Investor Relations for ASE Technology Holding. Welcome to our fourth quarter and full year 2025 earnings release. I'm joined today by Dr. Tien Wu, our COO, and Joseph Tung, our CFO. Thank you for attending our earnings release today. Please refer to our safe harbor notice on page 2. All participants consent to having their voices and questions broadcast via participation in this event. I ...

Market Dynamics and Positioning Fourth Quarter 2025 Earnings Release ASE Technology Holding 5 February, 2026 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 s ...

Financial Data and Key Metrics Changes - The company recorded fully diluted EPS of NT$2.41 and basic EPS of NT$2.50 for Q3 2025, with consolidated net revenues of NT$168.6 billion, representing a 12% sequential increase and a 5% year-over-year increase [4] - Gross profit was NT$28.9 billion with a gross margin of 17.1%, improving by 0.1% sequentially and 0.6% year-over-year [4][6] - Operating profit increased to NT$13.2 billion, up NT$3 billion sequentially and NT$1.7 billion year-over-year, with an operating margin of 7.8% [6][7] Business Line Data and Key Metrics Changes - The ATM business achieved record revenues of NT$100.3 billion, up NT$7.7 billion sequentially and NT$14.5 billion year-over-year, representing an 8% sequential increase and a 17% annual increase [8] - The EMS business reported revenues of NT$69 billion, increasing 17% sequentially but down 8% year-over-year, primarily due to differing underlying device seasonality [12][13] - The test business grew 11% sequentially and 30% annually, outpacing the assembly business [8] Market Data and Key Metrics Changes - The NT dollar appreciated by 4.6% against the US dollar during the quarter, negatively impacting margins at the holding company and ATM levels by 1.4% and 2.1% sequentially, and 2.4% and 3.6% annually [3][4] - The company expects a more stable NT dollar environment in Q4 with an average exchange rate of NT$30.4 per US dollar [4] Company Strategy and Development Direction - The company is focusing on expanding its LEAP services, driven by AI demand, and expects to reach NT$1.6 billion in revenue for LEAP by the end of the year [21][27] - The company plans to increase capital expenditures to support customer requests and business momentum into 2026, particularly for wafer probing for AI and non-AI chips [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue targets despite geopolitical uncertainties affecting packaging [26] - The company anticipates continued strong momentum in the AI and HPC-related business, with expectations for significant revenue growth in 2026 [27][64] Other Important Information - The company reported a net non-operating gain of NT$0.8 billion, primarily from foreign exchange hedging activities [7] - Total interest-bearing debt increased to NT$295.7 billion, primarily due to a NT$50 billion syndicated loan for capital expenditures [15] Q&A Session Summary Question: Progress on LEAP revenues and margin contribution - Management confirmed they are on track to reach the NT$1.6 billion target for LEAP this year, with strong momentum expected to continue into 2026 [26][27] Question: Pricing environment and negotiations - Management indicated that pricing remains resilient and will be adjusted based on the current market situation, with stable pricing expected for mainstream advanced packaging [32][35] Question: Update on US operations and competition - Management is evaluating investment opportunities in the US but has not made any decisions yet, emphasizing the need for economic viability [41] Question: Final test business update - Management is making necessary investments to build capacity for final tests, expecting meaningful revenue generation in the latter part of next year [44] Question: Revenue split for incremental AI-related revenue - Management indicated that for the expected NT$1 billion increase in AI-related revenue, approximately NT$650 million is anticipated from packaging and NT$350 million from testing [49] Question: Gross margin outlook - Management expects gross margins to improve, with a target of over 27% in Q4, driven by increased utilization and expansion in leading-edge business [64][83]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported fully diluted EPS of TWD 2.41 and basic EPS of TWD 2.50, with consolidated net revenues of TWD 168.6 billion, representing a 12% sequential increase and a 5% year-over-year increase [4][7] - Gross profit was TWD 28.9 billion with a gross margin of 17.1%, improving by 0.1% sequentially and 0.6% year-over-year [4][6] - Operating profit was TWD 13.2 billion, up TWD 3 billion sequentially and TWD 1.7 billion year-over-year, with an operating margin of 7.8% [6][7] Business Line Data and Key Metrics Changes - The ATM business achieved record revenues of TWD 100.3 billion, up 8% sequentially and 17% year-over-year, with a gross profit margin of 22.6% [8][9] - The test business grew 11% sequentially and 30% annually, outpacing the assembly business [8] - EMS revenues were TWD 69 billion, increasing 17% sequentially but down 8% year-over-year, with a gross margin of 9.2% [13][14] Market Data and Key Metrics Changes - The NT dollar appreciated by 4.6% against the U.S. dollar during Q3, negatively impacting margins [3] - The company expects a more stable NT dollar environment in Q4 with an average exchange rate of TWD 30.4 per U.S. dollar [4] Company Strategy and Development Direction - The company is focusing on expanding its leading-edge business, particularly in AI and HPC-related areas, with plans to increase CapEx to support this growth [21][22] - The company aims to maintain a competitive edge by investing in both packaging and testing capabilities, with a strong emphasis on customer needs and market demands [17][18] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in reaching the $1.6 billion revenue target for LEAP this year, with expectations for continued strong momentum into 2026 [26][27] - The company anticipates gross margin improvements in Q4, projecting a gross margin over 27% at stable currency levels [67] Other Important Information - The company reported a net non-operating gain of TWD 0.8 billion, primarily from foreign exchange hedging activities [7] - Total interest-bearing debt increased to TWD 295.7 billion, mainly due to a TWD 50 billion syndicated loan for CapEx [15] Q&A Session Summary Question: Progress on LEAP revenues and future outlook - 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 [26][27] Question: Pricing environment and negotiations - Pricing remains resilient, with management indicating they will adjust pricing based on current market conditions [32][36] Question: U.S. operations and competition - The company is evaluating investment opportunities in the U.S. but has not made any decisions yet [42] Question: Final test business update - The company is expanding its test business aggressively, expecting meaningful revenue from next-generation AI chips in the latter part of next year [46] Question: Revenue split for incremental $1 billion in 2026 - The expected breakdown for the $1 billion increase is approximately $650 million from packaging and $350 million from testing [54] Question: T-glass shortage impact - Management stated they have not seen disruptions in service due to material shortages and are well-positioned to secure necessary components [116]