ASE Technology, a leading chip packager and tester, held its shareholders’ meeting on Wednesday. The company predicted that revenue growth will accelerate in the second half of the year, driven by the AI boom. ASE plans to increase its capital spending, putting the bulk of it into the packaging business to meet surging demand.

ASE Technology, a leading chip packaging and testing services provider, held its shareholders’ meeting on Wednesday. Due to the global economy’s slow recovery in 2023, ASE posted consolidated revenue of NT$581.9 billion last year, down 13.3% from 2022. Its profit from operations fared worse, declining by nearly 50% to NT$40.3 billion. But on Wednesday, top executives said that the global chip sector was rebounding, bolstered by AI and robotics. They projected that revenue will recover in 2024.

Tien Wu
ASE Group chief operating officer
CoWoS packaging has been a highlight in the market. This company has built its advanced packaging business for many years. We expect this business to account for a higher revenue share, and to accelerate revenue recovery. We will significantly increase our capital expenditure for 2024, putting the bulk of capex into the packaging business.

According to market rumors, high demand for Nvidia’s GB200 super AI chips has led to additional orders at TSMC. Industry analysts believe that this will drive orders for backend testers like ASE.

Tien Wu
ASE Group chief operating officer
ASE and TSMC have long been close partners, and this relationship will continue. If TSMC is expanding, it has its reasons. If ASE expands, we have our own reasons. Our collaboration depends entirely on market demand.

ASE addressed its global expansion, saying that it’s considering production bases in Malaysia, Japan, and Mexico. ASE Group Chief Operating Officer Tien Wu said that a new California facility will be launched July 12, to strengthen ties with the North American market.

Tien Wu
ASE Group chief operating officer
Many of our clients will attend the launch ceremony. There will be people from the American Institute in Taiwan and the Washington office of the CHIPS and Science Act. In the chip testing business, when business is bad, you buy land and build factories. When business is good, you focus on expanding business and building machines.

Anticipating strong demand from AI, ASE projected that growth will accelerate in the second half of the year.

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