Taiwan's ASE Tech raises 2026 capex by $2 billion on strong demand (updated)

ASE Technology Holding

30/07/2026 09:50

Adds context and details in bullet points 2-8
By Wen-Yee Lee
TAIPEI, July 30 (Reuters) - Taiwan's ASE Technology Holding 3711.TW, the world's largest chip packaging and testing provider, said on Thursday it would raise this year's capital expenditure by $2 billion to around $10.5 billion, driven by strong demand. 
Its previous capital expenditure guidance was $8.5 billion.
Of the additional $2 billion, $1 billion will go toward facilities and $1 billion toward equipment.
The company said it is building 13 greenfield sites this year and has another eight brownfield sites, where it acquired existing factories and is repurposing them to meet demand.
The company said revenue from its leading-edge advanced packaging (LEAP) business is "tracking ahead" of its prior 2026 guidance of $3.5 billion.
Chief Financial Officer Joseph Tung said the company aims to double its LEAP business revenue in 2027, driven by strong business momentum.
ASE said AI is enabling new applications and driving demand for new hardware, while boosting demand for industrial, power, connectivity and storage devices.
The holding company's subsidiary Siliconware Precision Industries (SPIL) is a major packaging supplier for Nvidia's NVDA.O AI chips.
ASE on Thursday also reported second-quarter revenue of T$191.06 billion ($5.88 billion), up 27% from a year earlier, while net income was up 180% at T$21.068 billion.
ASE's shares have risen 101.6% so far this year, far outperforming a 37.87% rise in the broader market .TWII. The company's shares closed up 1.2% on Thursday ahead of its earnings release.

 (Reporting by Wen-Yee Lee; Editing by Clarence Fernandez AND dAVID hOLMES)
 ((clarence.fernandez@thomsonreuters.com; +6568703861; RM:clarence.fernandez.thomsonreuters.com@thomsonreuters.net))