Title: ASE Technology Forecasts 11% Q1 2025 Revenue Growth, US Expansion on the Horizon
Anticipated 11% increase in Q2 revenues by ASE
Hello there! Let's dive into the latest happenings with ASE Technology Holding Inc (日月光投控). Blimey, they've got some exciting news to share!
ASE revealed yesterday that its core chip assembly and testing manufacturing (ATM) business revenue is expected to surge up to 11% sequentially in Q1 2025, owing to customers stockpiling inventory to combat potential tariff risks. However, the company anticipates a 10% annual decrease in revenue for its electronic manufacturing service business during the same period due to seasonal factors.
Total revenue for Q1 2025 is predicted to increase at least 2% from the previous quarter's NT$148.15 billion (approximately US$4.63 billion). The company stated, "Product flow appears to be strong and we are seeing some potential for accelerated seasonality and inventory build during the quarter."
The gross margin for the ATM business is expected to expand to between 24% and 24.1%, compared to 22.6% in the last quarter.
ASE's chief financial officer, Joseph Tung (董宏思), mentioned that the company is discussing potential US expansion plans with customers. "We are engaging in discussions and evaluating the opportunities with interest," he said. While details regarding the investment size and timeline remain scarce, any decisions made will be based on economic viability.
According to Tung, there's no sign of softening demand for advanced chip-on-wafer-on-substrate packaging technology, a service provided by ASE's partner, Taiwan Semiconductor Manufacturing Co (TSMC).
In 2025, ASE aims to maintain its projected capital spending at approximately US$2.5 billion. The company will continue expanding its capital budget in the chip testing business, focusing on advanced technology and AI-related chips, which is anticipated to be a profitable venture for ASE. chip testing revenue is estimated to contribute about 20% to the company's total revenue by the end of 2025, compared with about 16% in 2024.
ASE's net profit for the last quarter grew 33% year-over-year to NT$7.55 billion, dipping 19% quarter-over-quarter from NT$9.31 billion. Earnings per share were NT$1.75, up from NT$1.31 year-over-year, but down from NT$2.15 the previous quarter.
Now, here's a fascinating tidbit from the enrichment data - ASE is considering a potential US$500 billion AI server infrastructure project with Nvidia, announced in April 2025. This project involves ASE's subsidiary Siliconware Precision Industries (SPIL), but remains under review with no finalized investment size or timeline as of yet.
Take care and stay tuned for more updates on ASE Technology's growth strategies and expansion plans!
- Due to customers stockpiling inventory, ASE Technology Holding Inc reportedly anticipates a 11% sequential revenue growth for its core chip assembly and testing manufacturing business in Q1 2025.
- ASE Technology is reportedly considering a potential US expansion plan, with discussions taking place with customers, according to the company's chief financial officer, Joseph Tung.
- In 2025, ASE plans to maintain its projected capital spending at approximately US$2.5 billion, focusing on expanding the chip testing business, particularly advanced technology and AI-related chips.
- In the technology industry, ASE is reportedly in talks with Nvidia for a potential US$500 billion AI server infrastructure project, involving ASE's subsidiary Siliconware Precision Industries (SPIL), according to enrichment data.
