ASE Technology Holding has raised its 2026 capital expenditure budget to a record US$10.5 billion—the second increase in 2026—citing strong AI-related demand for advanced packaging and testing services.
The company also projects that its LEAP revenue will double in 2027, underscoring confidence in sustained AI infrastructure investment.
What happened
ASE Technology Holding has raised its 2026 capital expenditure budget to a record US$10.5 billion, the second increase this year from its original plan of US$8.5 billion, and expects LEAP revenue to double in 2027.
Why it matters
The jump reflects strong AI-driven demand for advanced packaging and testing services—the backend processes that prepare AI chips for deployment. For semiconductor equipment makers and chipmakers relying on ASE's services, this signals sustained investment confidence in AI infrastructure through 2027.
What to watch
Whether ASE executes the capex plan on schedule and whether LEAP revenue actually doubles by 2027, as the company projects; these milestones will signal the durability of AI-chip manufacturing demand.
ASE Technology Holding, a major provider of semiconductor packaging and testing services, has announced a significant expansion of its 2026 capital expenditure plan. The company raised its capex budget to a record US$10.5 billion—the second time it has increased the figure this year—up from an original target of US$8.5 billion. The driver behind this substantial increase is robust demand tied to artificial intelligence infrastructure. As AI systems scale globally, the backend processes that prepare advanced chips for deployment—packaging and testing—have become critical bottlenecks. ASE's willingness to commit an additional US$2 billion in capital spending reflects confidence that this demand will persist. Looking ahead to 2027, ASE expects its LEAP revenue to double, signaling that the company anticipates both sustained volume growth and improved pricing power in its AI-related service lines. This forward guidance reinforces the message that AI-driven semiconductor manufacturing investment is not a temporary cycle but a structural shift requiring sustained infrastructure buildout.
ASE Technology Holding's decision to raise 2026 capex for a second time underscores the intensity of AI-chip manufacturing investment. The company has now lifted its budget from US$8.5 billion to US$10.5 billion—a 24% increase—reflecting strong and persistent demand signals from its customers for advanced packaging and testing capacity. This is not a marginal adjustment but a material repricing of the company's capital needs, indicating that demand visibility extends well into 2027. The doubling of LEAP revenue that ASE projects for 2027 suggests the company expects this momentum to continue and accelerate, with packaging and testing becoming increasingly critical bottlenecks in AI chip deployment.
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