ASE Technology Holding: YTD investment tracking ahead of its ’26 guide backed by solid AI CPU/ASIC demand

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ASE Technology Holding: YTD investment tracking ahead of its ’26 guide backed by solid AI CPU/ASIC demand

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ASE Technology Holding

YTD investment tracking ahead of its ’26

guide backed by solid AI CPU/ASIC demand

Reiterate Rating: BUY | PO: 750.00 TWD | Price: 679.00 TWD

YTD equipment buys tracks 66% of its ’26 capex guidance 07 July 2026

ASE has filed 82 equipment buys and 64 facility construction announcements through Equity

early July. While the filing may only capture the major payment, on the like for like basis,

the spending on equipment has reached NT$175bn (Exhibit 1), booking 66% of its ’26 HaasResearchLiu Analyst>>

capex guidance of US$8.5bn which is already revised up from the original US$7bn Merrill Lynch (Taiwan)

target. Specifically, the equipment mix is skewed toward 2.5D packaging (TSV, +886haas.liu@bofa.com2 2376 3727

metrology, wet cleaning, flux coating, dispensing, molding, grinding, AOI and dicing) and Mike Yang >>

testing (tester & prober). The limited space for further expansion also drove facility and Research Analyst

Merrill Lynch (Taiwan)

clean room construction contracts to NT$82bn YTD mostly set to complete by 4Q28. mike.c.yang@bofa.com

Further capex upside for ‘26-27 as HPC gains accelerate CathyResearchHsuAnalyst>>

We recently lifted our expectation for ASE capex in ‘26/27 to US$8.5bn/US$12.2bn (vs. cathy.hsu3@bofa.com

US$5.5bn in ’25) in our CPU manufacturing report, close to TSMC’s back-end spending,

on solid AI demand and foundry outsourcing. With YTD equipment buy tracking stronger,

the company might need to further lift its capex to ~US$10bn in ’26 and US$13-15bn in

Stock Data’27, putting the capex/IC ATM sales elevated at 40% through ’28 (vs 10-yr avg. 20%) to

fulfill its customers’ demand.