J.P. Morgan Taiwan FTM 12 Jun 26 ASE Technology Holding Co Ltd; Grand Process Technology and More

研报英文原文证据摘录

J.P. Morgan Taiwan FTM 12 Jun 26 ASE Technology Holding Co Ltd; Grand Process Technology and More

Asia Pacific Equity Research

Taiwan First to Market 12 June 2026

Top Stories

ASE Technology Holding Co Ltd (Gokul Hariharan) (3711 TT, OW)

CPU demand creating a severe shortage in 2.5D packaging; raising PT to NT$650

We believe that the demand outlook for ASE’s LEAP (Leading-Edge Advanced Packaging and Testing) business has become

even stronger, primarily driven by upside to server CPU demand (both NVDA Vera and AMD Venice CPUs are using CoWoS

and similar packaging techniques). Currently, ASE remains severely constrained on clean-room availability, and is likely to

continue aggressively acquiring brownfield plants to fulfil the strong demand from full-process 2.5D packaging customers such

as AMD. We anticipate ASE to become even more aggressive on capex spending in 2026-28 ( we are raising our FY27/28E

capex by ~$1.5bn/~$ 1bn ), which should drive stronger revenue and profit growth for LEAP, well into 2028. In addition,

traditional packaging business also appears to be improving, driven by rising AI power and adjacent demand, increased pricing

and lack of new capacity addition. We also believe that ASE is likely to lift its structural ATM GM range to 30% or higher (from

the 24-30% range currently), which should signal a new regime of pricing/profitability. We are raising our 2027/28 EPS

estimates by 7%/9% to reflect the stronger growth in LEAP and faster GM improvement. We raise our Jun-27 PT to NT$650 (

based on ~20x 12M forward EPS ).

Grand Process Technology (Jimmy Huang) (3131 TT, OW)

May revenue below expectations on weak agency business; a new factory lease a positive

development; OW