Research Reports

Q4 2025 consolidated net revenues NT$177.9B, +6% QoQ, +10% YoY (IR)
Q4 ATM revenue record NT$109.7B, +9% QoQ, +24% YoY; test revenue +13% QoQ, +33% YoY (IR)
Q4 ATM gross margin 26.3%, +3.7pp QoQ, +3pp YoY; operating margin 14.7%, +3.9pp QoQ, +4pp YoY (IR)
FY2025 consolidated revenue +8% YoY; ATM +20% YoY, EMS –5% YoY (IR)
FY2025 LEAP revenue $1.6B, 13% of ATM revenue (up from $0.6B / 6% in 2024) (COO)
FY2025 machinery CapEx $3.4B; building/facilities CapEx $2.1B (IR)
Q4 EBITDA NT$38.3B; net debt-to-equity 46% (IR)
FY2025 net income NT$40.7B, +25% YoY; basic EPS NT$9.37 (IR)
Official guidance (Q1 2026): Consolidated revenue –5% to –7% QoQ; gross margin –50 to –100bp QoQ; operating margin –100 to –150bp QoQ (CFO)
ATM Q1 2026: Revenue decline low-to-mid single-digit % QoQ; gross margin 24%–25% (structural range) (CFO)
FY2026 LEAP revenue target: At least double to $3.2B (~75% packaging, ~25% testing) (COO)
FY2026 CapEx: Add $1.5B machinery (2/3 for leading-edge); buildings/facilities similar to FY2025 $2.1B (CFO)

"The AI server cycle continues, primarily led by hyperscaler and the data center development." (COO)
"We expect revenue uptrend to continue 2026 and beyond, driven by leading-edge solutions and broad-based semiconductor demand." (COO)
"We are seeing last year, the mainstream business recovered. We believe the mainstream... will recover better this year comparing to last year." (COO)
"We're expecting a favorable pricing environment for the year. And as operating leverage continues to improve, we expect ATM gross margins to stay within our structural margin range throughout the year and to improve every quarter." (CFO)
"We will remain aggressive in CapEx spending to support the strong business prospects for 2026 and beyond and to further extend our lead over competition." (CFO)

Metric	Value	Speaker/Context
Q4 2025 consolidated revenue	NT$177.9B	IR
Q4 2025 ATM revenue	NT$109.7B (record)	IR
Q4 2025 ATM gross margin	26.3%	IR
Q4 2025 ATM operating margin	14.7%	IR
Q4 2025 consolidated gross margin	19.5%	IR
Q4 2025 consolidated operating margin	9.9%	IR
Q4 2025 basic EPS	NT$3.37	IR
FY2025 consolidated revenue growth	+8% YoY	IR
FY2025 ATM revenue growth	+20% YoY	IR
FY2025 LEAP revenue	$1.6B (13% of ATM)	COO
FY2025 machinery CapEx	$3.4B	IR
FY2025 building/facilities CapEx	$2.1B	IR
FY2025 net income	NT$40.7B (+25% YoY)	IR
FY2025 basic EPS	NT$9.37	IR
Q4 2025 EBITDA	NT$38.3B	IR
Net debt-to-equity (Q4 2025)	46%	IR
Q1 2026 consolidated revenue guidance	–5% to –7% QoQ	CFO
Q1 2026 ATM gross margin guidance	24%–25%	CFO
FY2026 LEAP revenue target	$3.2B (double FY2025)	COO
FY2026 machinery CapEx addition	$1.5B	CFO
FY2026 building/facilities CapEx	~$2.1B (similar to FY2025)	CFO

Topic: CapEx guidance revision and mainstream demand
Key points:
- CapEx guidance revised from $1.6B to $2.6B last quarter, now to $3.2B this quarter, driven by better factory space visibility.
- Demand "far beyond" capacity; management cites quality, delivery, resource planning, equipment lead time, and engineering training as constraints.
- Mainstream business (IoT, automotive, industrial) loading "quite decent"; pricing environment described as "friendly."
Mgmt stance: Bullish — management expresses confidence in achieving $3.2B CapEx "comfortably," with potential upside.

Topic: Optical business and CPO supply chain involvement
Key points:
- ASE works with foundry partner and end customer on silicon photonics (CPO) at packaging level; system-level optical integration spans chip to rack.
- USI (EMS) is pursuing early deployment in optical roadmap; no conflict with ASE's CPO focus.
- Packaging-level challenges are "easier" but require deeper integration of electrical/light sources, memory, and configurations.
Mgmt stance: Neutral — acknowledges technical complexity but highlights Taiwan ecosystem advantage for co-optimization and first product success.

Topic: EMS strategy and transition timeline
Key points:
- EMS business has been "muted" over past 2 years due to competition and geographic constraints; consumer business (e.g., SIP, wearable) ramped to comfortable level.
- AI data center driving new opportunities in optical, power supply, and system-level optimization; EMS resource being realigned toward AI-motivated sectors.
- This year EMS is growing; ATM growing "very fast"; EMS revenue contribution visibility expected in coming quarters.
Mgmt stance: Bullish — no downsizing; market shift and customer requirements driving recalibration, with stronger EMS vintage expected in next few years.

Topic: Full process (LEAP) plans, mainstream outlook, and packaging strategy
Key points:
- Out of $3.2B CapEx, ~10% full process revenue expected by end of this year; not competing with foundry partner, but serving as second source.
- Mainstream demand expected to keep growing similar to 2025 (10%+); includes PC/smartphone (some customer softening noted), plus AI data center loading (FPGA, power management, router).
- Acquired 2 factories for Infineon; buying another factory in Penang for ADI (closing Q2 2025); industrial/automotive recovery observed.
- Two packaging families: chip/die sizes getting bigger (requiring larger wafer, 3D/2.5D, HBM, silicon photonics, vertical power) vs. smaller due to efficiency; ASE focuses on co-optimization and collaboration.
Mgmt stance: Bullish — CapEx is "fine"; AI market is "very big" and "beginning"; general sector recovery feels "comfortable" for 2026 and beyond.