Research Update · 26 Jul 2026
Semiconductors | OSAT / Advanced Packaging
ASE Technology reports second-quarter results on 31 July, and the quarter's revenue is already on file. Taiwan monthly filings put 2Q26 at a record NT$191.1bn, up 26.7% YoY and 10.0% QoQ, above the guided 7-9% QoQ range. The release turns on what the monthlies cannot show: whether the advanced-packaging price increases reported through the quarter lifted gross margin into the guided band, and whether the full-year LEAP revenue guide of over US$3.5bn moves higher. The shares trade at a premium to OSAT peers after this year's run, so the margin and guidance detail is what the release adds.
Monthly filings through June put the quarter at NT$191.1bn, up 26.7% YoY and 10.0% QoQ, above the top of management's 7-9% QoQ guidance. June alone was NT$65.8bn, up 32.9% YoY, a record for the month of June.
Management guided consolidated gross margin up 20-100bp QoQ from 20.1%, with ATM gross margin between 26% and 27%. ASE reportedly raised advanced-packaging quotes by more than 20% during the quarter, so the margin line shows whether that pricing reached the income statement.
Management raised its full-year leading-edge advanced packaging revenue guidance by about 10% to over US$3.5bn in April. Since then June set a revenue record and the chief operating officer described capacity as severely short of demand, so a further increase is a live possibility.
ASE trades near NT$603, about 36 times forward earnings against an OSAT peer median of 25 times, after a run that had the stock up 169% year to date by early July. The shares fell more than 5% on 24 July on reports that Amkor won a large NVIDIA order, so order-allocation commentary will be read closely.
ASE Technology is the world's largest outsourced semiconductor assembly and test (OSAT) provider. Its ATM business packages and tests chips for fabless designers and foundries, spanning wirebond, flip-chip, and the leading-edge advanced packaging (LEAP) used in AI accelerators; its EMS business, run through Universal Scientific Industrial, assembles electronic modules and systems. ASE operates mainly from Kaohsiung, Taiwan, with plants across Asia, and is expanding capacity across advanced packaging and test. It is listed in Taipei (3711) and New York (ASX US).
The table sets out what management guided in April, where the street sits, and what is already reported. Second-quarter revenue is on file from the monthly filings; margins and profit are what the 31 July release adds.
| Metric | 2Q26 | FY2026E |
|---|---|---|
| Revenue | NT$191.1bn reported (+10.0% QoQ, +26.7% YoY); guided +7-9% QoQ | Street NT$789.1bn (+22% YoY) |
| Gross margin | Guided up 20-100bp QoQ from 20.1% | Street 21.1% implied |
| Operating margin | Guided up 50-120bp QoQ from 10.1% | Not guided |
| Net profit | Not guided | Street NT$74.4bn (+83% YoY) |
| ATM revenue | Guided +9-11% QoQ; gross margin 26-27% | LEAP over US$3.5bn guided; mainstream about +13% |
| Capital spending | Not guided quarterly | Increased by about US$1.5bn (April) |
Source: Company 1Q26 earnings call guidance (29 April 2026), Taiwan MOPS monthly filings, Bloomberg consensus; Zero One Investment Research.
TrendForce reported on 1 July that ASE raised advanced-packaging quotes by more than 20%, the latest round of AI-driven price increases across packaging and test. Chief operating officer Tien Wu said on 24 June that price increases were necessary because capacity across the company's advanced-packaging lines was severely short of demand (Economic Daily News, Liberty Times).
ASE is expanding capacity at the same time. It has 15 plants under construction, and its announced equipment purchases had passed NT$62bn for the year by mid-June (Liberty Times, 18 June). TSMC's advanced-packaging lines cannot keep up with AI demand, and overflow orders have been flowing to ASE and Powertech (Economic Daily News, 14 June; CNA, 12 July). ASE also announced an automated 310mm panel-level packaging line, described as an industry first, with production targeted for 2027.
The monthly prints kept climbing. May revenue of NT$63.0bn rose 28.6% YoY to a 43-month high, and June's NT$65.8bn was up 32.9% YoY, a record for the month of June. The shares rose as much as 9% on the June print (Economic Daily News, 9 July).
Sell-side ratings stayed positive through the run. Nomura reiterated its Buy rating with a NT$730 target on 30 June, and Goldman Sachs named ASE among its preferred Taiwan packaging and test names on 3 June. Then on 24 July, press reports said Amkor won a large NVIDIA packaging order; ASE and other Taiwan OSAT names fell more than 5% that session (Commercial Times).
All three months of the second quarter are reported, so the quarter's revenue is settled. April revenue was NT$62.25bn, May NT$63.03bn, and June NT$65.78bn, for a quarterly total of NT$191.1bn. The YoY growth rate climbed each month, from 19.2% in April to 28.6% in May to 32.9% in June, and first-half revenue reached NT$364.7bn, up 22.0% YoY.
| Month | Revenue (NT$bn) | MoM | YoY |
|---|---|---|---|
| April 2026 | 62.25 | +1.1% | +19.2% |
| May 2026 | 63.03 | +1.3% | +28.6% |
| June 2026 | 65.78 | +4.4% | +32.9% |
| 2Q26 total | 191.06 | +10.0% QoQ | +26.7% |
Source: Taiwan MOPS monthly revenue filings; Zero One Investment Research.
The total landed above the guidance range. Management's 7-9% QoQ guide off 1Q26 revenue of NT$173.7bn implied NT$185.8-189.3bn; the reported NT$191.1bn is 10.0% QoQ growth, about NT$1.7bn above the top of that range, and 1.3% above the street's NT$188.6bn consensus for the quarter. The release confirms how much of the beat converted to profit.
Source: Company disclosures, Taiwan MOPS monthly filings, Zero One Investment Research
On the 29 April call, management guided 2Q26 consolidated revenue up 7-9% QoQ, gross margin up 20-100bp QoQ from 20.1%, and operating margin up 50-120bp from 10.1%. Within that, ATM revenue was guided up 9-11% QoQ with gross margin between 26% and 27%, and EMS revenue up at least 10% YoY with operating margin similar to 2Q25. The guidance assumed an exchange rate of NT$31.8 per US dollar.
For the full year, management raised its LEAP services revenue guidance by about 10% to over US$3.5bn, kept ATM mainstream growth at about 13%, and increased the capital spending budget by roughly US$1.5bn, including US$0.6bn of machinery mostly for wafer sort capacity deploying into 2027. The street's FY2026E numbers have moved up with the monthlies: consensus now carries revenue of NT$789.1bn, up 22% YoY, and net profit of NT$74.4bn, up 83% YoY. A full-year revenue increase of 22% matches the pace the first half has already delivered, so the release's guidance commentary decides whether those numbers keep rising.
Source: Company disclosures, Bloomberg consensus, Zero One Investment Research
Revenue is fixed at NT$191.1bn, so the interest is below the top line. On gross margin, record volume, a richer ATM mix, and the reported quote increases pull toward the upper half of the guided 20.3-21.1% band; the NT dollar spent much of the quarter stronger than the 31.8 guide assumption, and the 15-plant capacity build adds depreciation, which pull the other way. On balance we expect gross margin in the upper half of the band: the revenue overshoot means more volume over the same fixed base, and the quote increases apply to the fastest-growing part of the mix. Net profit should rise QoQ from 1Q26's NT$14.1bn on the higher revenue.
On guidance, the reported price increases and the capacity shortage management described in June leave room for a further increase to the LEAP guide, and third-quarter ATM guidance will show whether the second quarter's 10% QoQ pace carries into the seasonally stronger half. A higher capital spending number would confirm the equipment filings already visible; the company's cumulative announced purchases passed NT$62bn by mid-June.
ASE trades at about 36 times forward earnings and 18 times forward EV/EBITDA, against an OSAT peer median near 25 times and 9 times. The premium reflects ASE's position as the scale leader in a capacity-short advanced-packaging market where it has been raising quotes, while the peer set skews toward mature packaging and test. A premium built on that position depends on delivery, which is why the margin line and the LEAP guide in this release matter more than the revenue that is already known. The 24 July pullback on the Amkor-NVIDIA report shows how quickly order-allocation news moves the shares.
| Company | Mkt cap (US$bn) | P/E (TTM) | P/E (Fwd) | EV/Sales (TTM) | EV/Sales (Fwd) | EV/EBITDA (TTM) | EV/EBITDA (Fwd) | |
|---|---|---|---|---|---|---|---|---|
| US-Listed | ||||||||
| Amkor Technology | 16.1 | 36.9x | 30.7x | 2.3x | 2.2x | 13.2x | 11.3x | |
| Taiwan-Listed | ||||||||
| King Yuan Electronics | 10.3 | 37.0x | 28.1x | 9.5x | 7.3x | 18.2x | 15.0x | |
| Powertech Technology | 6.3 | 32.7x | 21.9x | 2.7x | 2.3x | 10.0x | 7.1x | |
| ChipMOS Technologies | 1.9 | n.m. | 20.6x | 2.6x | 2.1x | 10.1x | 6.4x | |
| Chipbond Technology | n.m. | n.m. | n.m. | n.m. | n.m. | n.m. | n.m. | |
| Median (All Peers) | 36.9x | 25.0x | 2.6x | 2.3x | 11.7x | 9.2x | ||
| ASE Technology† | 81.8 | 55.6x | 35.7x | 4.2x | 3.6x | 21.1x | 17.9x | |
Source: FMP market data and consensus estimates, Zero One Investment Research. Prices as of 26 Jul 2026. Forward multiples use each company's next unreported fiscal year (FMP consensus). P/E shown as n.m. where net margin is below 5% or the multiple exceeds 150x. P/BV omitted (not a relevant metric for capital-intensive semiconductor names). † FMP operating-income defect adjudicated 2026-07-07; EBIT-derived trailing multiples treated with caution.