ASE expects advanced packaging sales to double on AI demand
ASE is set for strong growth as AI-driven demand and outsourcing from foundries accelerate expansion in advanced semiconductor packaging.
ASE Technology Holding, the world’s largest outsourced semiconductor assembly and test provider, expects its advanced packaging revenue to double in 2026 to approximately $3.2 billion, driven by strong demand from AI chipmakers.
The company also plans to increase capital expenditure this year beyond the $5.5 billion invested in 2025, as it expands cleanroom capacity and builds new facilities to support advanced packaging growth.
Much of the anticipated expansion is linked to outsourcing from TSMC, which has faced capacity constraints amid surging AI chip demand.
As leading-edge packaging requirements for AI processors intensify, more on-substrate and full-process packaging work is expected to shift to OSATs.
Analysts indicate that packaging for GPUs from Nvidia could be a primary growth driver in 2026, with a stronger ramp anticipated in the second half of the year as next-generation products enter volume production.
Advanced packaging opportunities are also emerging from Advanced Micro Devices, particularly as multiple CPU and non-GPU products transition to 2.5D architectures.
Industry observers suggest full-process packaging could begin contributing meaningful revenue in the latter half of 2026, with further upside in 2027.
Additional potential upside may come from custom AI accelerators, including programs linked to hyperscale customers.
With AI processors increasingly relying on complex 2.5D integration, high-density substrates and heterogeneous integration, ASE’s expansion signals a broader structural shift in the advanced packaging landscape, as OSATs take on a greater share of high-value packaging traditionally concentrated within foundries.
