ASE, a leader in semiconductor assembly and testing, reported stronger-than-expected overall operations in the third quarter of 2025, driven by growth in advanced packaging fueled by AI applications and a stabilized New Taiwan dollar (NT$) against the US dollar. The company's quarterly profit reached an 11-quarter high.
Looking ahead to the fourth quarter, ASE projects its semiconductor assembly, testing, and material (ATM) business revenue to increase 3-5% quarter-over-quarter based on an NT$/US$ exchange rate of 30.4, which will boost gross margin by 1-1.5pp quarter-over-quarter. Meanwhile, its electronic manufacturing services (EMS) segment is expected to remain flat or slightly decline quarter-over-quarter, with operating margins roughly matching levels from the fourth quarter of 2024.
In its third quarter financial report, ASE posted consolidated revenue of NT$168.569 billion (approx. US$5.5 billion), up 11.8% quarter-over-quarter and 5.3% year-over-year. Gross margin rose to 17.1%, marking the highest since the first quarter of 2023, while operating margin stood at 7.8%. Net income attributable to the parent company was NT$10.87 billion, increasing 45% from the second quarter and 12% year-over-year.
The semiconductor assembly materials segment generated NT$100.289 billion in revenue during the third quarter, growing 8.3% quarter-over-quarter and 16.9% year-over-year, accounting for approximately 59.49% of total sales.
By product application, communications represented 45% of ATM revenue in the third quarter, followed by automotive, consumer electronics, and others at 30%, and computing at 25%. The top 10 customers contributed about 58% of revenue.
Article translated by Charlene Chen and edited by Jack Wu
