ASE Technology

ASE Technology (ASE) is the largest provider of outsourced assembly and test services for semiconductors. It packages and tests chips for chip designers and chip makers, including advanced packages for AI and high-performance computing chips, and it makes packaging materials. Its subsidiary USI gives electronic manufacturing services (EMS), such as the assembly of modules and systems. In Q3 2026, packaging gave about 50%, testing 11% and EMS 38% of net revenues of NT$244,161 million.

ASE has plants in Taiwan, China, South Korea, Japan, Singapore, Malaysia, the Philippines, Vietnam, Mexico, Tunisia, the United States and Europe, and it had 119,346 employees at September 30, 2026. Its shares trade in Taipei, and its ADSs trade on the New York Stock Exchange. Each ADS represents two common shares. The head office is in Kaohsiung, Taiwan.

Jason C.S. Chang is Chairman.

ASE trades above the AI estimate because investors pay for its fast growth in advanced packaging and testing for AI chips. In Q3 2026, net revenues rose 44.8% to NT$244,161 million, ATM revenues rose 51.0%, and the ATM operating margin rose to 20.0%. Net income attributable to shareholders rose to NT$26,996 million from NT$10,870 million. ASE expects Q4 2026 revenue to grow by 6% to 8% from Q3, with a higher operating margin.

For the shares to keep this price, three things must be true. Demand for AI chips must stay strong in 2027, so that the new capacity fills. ATM margins must keep rising while ASE spends heavily on equipment, US$2,104 million in Q3 2026 alone. Trade rules between the United States, China and Taiwan must not cut its sales.

The monthly revenue reports and the Q4 2026 report, expected in early February 2027, are the next tests. A slowdown in AI chip orders or lower margins can push the shares down to the AI estimate.

AI estimate, checked by Kevin. How it is made

1. Oct 29, 2026Passed

   Q3 2026 results: ATM growth and marginsATM revenue growth above 40% and a higher ATM margin pass; a lower ATM margin fails.Outcome: ATM revenues rose 51.0%, and the ATM operating margin rose to 20.0% from 15.7% in Q2 2026.
2. Jan 29, 2027 · est.Pending

   Q4 2026 results and 2027 outlookQ4 revenue growth of 6% to 8% with an operating margin of 14.5% or more passes; a lower margin fails.
3. Q2 2027 · est.Pending

   AI packaging demand in 2027Monthly ATM revenue growth above 30% from a year earlier in the first half of 2027 passes; a fall fails.

Every passed and failed checkpoint across all picks

• November 10, 2026ASE reported October 2026 net revenues of NT$88,615 million, up 47.1% from October 2025. ATM net revenues were NT$56,840 million, up 57.7%.
• October 29, 2026ASE reported Q3 2026 results. Net revenues rose 44.8% to NT$244,161 million. Net income attributable to shareholders rose to NT$26,996 million from NT$10,870 million, and basic EPS was NT$6.13, or US$0.384 per ADS. The gross margin was 22.1% and the operating margin 13.6%. ATM revenues rose 51.0%, with an operating margin of 20.0%. For Q4 2026, ASE expects revenue growth of 6% to 8% from Q3, a gross margin of 23% to 24% and an operating margin of 14.5% to 15.5%.
• August 3, 2026ASE priced US$1 billion of zero coupon convertible bonds due 2031. It uses the money to repay loans of subsidiaries and to buy materials in foreign currencies.

Next earnings

Expected about January 29, 2027. The company has not confirmed the date.

• 20-FAnnual report for the period ended Dec 31, 2025Filed April 1, 2026 · Read it on sec.gov
• 20-FAnnual report for the period ended Dec 31, 2024Filed March 27, 2025 · Read it on sec.gov

Every filing on SEC EDGAR (CIK 1122411)

• The semiconductor industry is cyclical. If demand for AI or other chips falls, ASE can have too much capacity after large equipment purchases.
• Sales depend on a few customers. In Q3 2026, the five largest customers gave about 46% of net revenues on an ATM basis, and one customer gave more than 10% of total net revenues.
• Most plants are in Taiwan and China. Tension between Taiwan and China, export controls or U.S. tariffs can stop production or lower sales.
• Debt rose with capital spending. The net debt to equity ratio was 0.66 at September 30, 2026, against 0.47 at June 30, 2026.
• ASE reports in New Taiwan dollars, but it sells mostly in U.S. dollars. Changes in the exchange rate move margins and the value of each ADS in U.S. dollars.

ASE funds itself with bank loans, bonds, convertible bonds and cash flow. At September 30, 2026, short-term borrowings were NT$70,428 million, the current part of long-term debt NT$5,141 million, bonds payable NT$42,201 million and long-term borrowings NT$276,633 million, so debt was NT$394,403 million. Read more

Dividend yield

1.2% (last 12 months, at today’s price of $34.36)

Paid per share

$0.417 in the last 12 months (1 payment)

Current annual rate

$0.417 ($0.417 × 1 a year)

Latest ex-dividend date

July 6, 2026, $0.417 per share

Dividends per share by year

Over the last 5 years, the dividend grew by about 6.7% a year. Over the last 10 years, the dividend grew by about 5.2% a year.

Source: company filings and market data, read on November 10, 2026. The ex-dividend date is the first day a buyer no longer gets the next payment.