ASE Holdings posted solid growth in advanced packaging and testing in the first half of 2025, fueled by robust demand for AI-related high-performance computing (HPC) chips. However, a strong New Taiwan Dollar dented second-quarter profitability.
Advanced packaging and testing revenue surpassed 10% of ASE's total backend business in the first half, a notable rise from 6% in 2024. Director and COO Tien Wu said the company's advanced packaging lines are operating at full capacity to meet strong demand from cloud AI customers, while traditional backend services have begun rebounding since the second quarter.
ASE's Taiwan-based wirebonding lines are running at full utilization, supported by two key drivers: growing demand for AI peripheral hardware and a shift in automotive orders from overseas sites to its high-efficiency automated facilities in Taiwan — the latter proving especially strong.
Despite weakness in the global auto market, Wu said automotive packaging and testing orders could emerge as a major growth catalyst in the second half, complementing AI demand and positioning Taiwan's semiconductor supply chain as an early indicator of broader recovery.
CFO Joseph Tung projected third-quarter revenue to rise 12–14% quarter-over-quarter in US dollar terms, excluding currency effects. Advanced packaging revenue is on track to grow by US$1 billion year-over-year in 2025, contributing to a 10% increase in total backend revenue. General packaging and testing is expected to see high single-digit growth.
ASE reported a 9% year-over-year increase in consolidated revenue for the first half of 2025, with backend revenue rising 18%. Test services led the growth, surging 31% year-over-year, driven by demand for one-stop solutions and advanced testing. The segment is projected to double, with advanced testing expected to account for up to 20% of backend revenue.
In the second quarter of 2025, ASE generated NT$150.75 billion (approx. US$5.03 billion) in consolidated revenue, up 1.8% quarter-over-quarter and 7.5% year-over-year, with a gross margin of 17%. Backend revenue reached NT$92.565 billion, increasing 6.8% sequentially and 19% annually, though gross margin declined to 21.9% due to currency headwinds.
Article translated by Levi Li and edited by Jack Wu
