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The call highlights strong momentum in ASE's ATM and LEAP businesses — record ATM revenue, rapid LEAP expansion (targeting USD 3.2B in 2026), improved margins, higher utilization and solid top-line and net income growth (+25% net income YoY). Management is investing aggressively (CapEx and R&D) to capture multiyear AI-driven demand and strengthen long-term competitive positioning. Offsetting risks include continued EMS softness, rising operating expenses, heavy near-term CapEx and higher debt/interest costs, FX headwinds, and a cautious Q1 2026 guide (revenue and margin decline). Overall, positive operational and structural progress outweigh near-term and financial execution risks, but execution on capacity build and EMS turnaround will be important to sustain the trajectory.
Management guided Q1 2026 consolidated revenue to decline only 5–7% QoQ (NTD basis, FX assumption USD1 = NTD31.4 vs NTD30.9 last quarter), with consolidated gross margin down 50–100 bps QoQ and consolidated operating margin down 100–150 bps QoQ; ATM Q1 revenue is expected to fall low‑ to mid‑single‑digits QoQ with ATM gross margin guided to 24–25%, while EMS Q1 revenue and operating margin should be similar to Q1 2025. For full‑year 2026, management expects ATM leading‑edge (LEAP) revenue to at least double from USD1.6B to ~USD3.2B (roughly 75% packaging / 25% testing), full‑process LEAP to triple to ~10% of LEAP revenue, wafer‑sort/final test contributions to grow (final test ~10% of test), and overall ATM revenue to outgrow the logic market; they expect ATM gross margins to stay within the structural range and improve every quarter (H2 reaching the upper end), ATM operating‑expense ratio to decline ~100 bps and consolidated Opex% to fall ~80 bps. CapEx will be aggressive: add ~USD1.5B of machinery on top of 2025’s USD3.4B (totaling ~USD4.9B), with about two‑thirds for LEAP, and buildings/facilities investment at a level similar to 2025’s USD2.1B; management also expects an effective tax rate of about 18% for 2026.
LEAP revenue grew from USD 0.6B in 2024 to USD 1.6B in 2025 (up ~167% YoY as a base comparison). Management expects LEAP to at least double to ~USD 3.2B in 2026 (75% packaging / 25% testing). Full-process LEAP is expected to triple in 2026 to ~10% of LEAP revenue, with wafer-sort and final-test contributions ramping later in the year.
ATM reported record Q4 revenue of NTD 109.7B, up 9% sequentially and 24% YoY. ATM full-year revenue increased ~19% in 2025; packaging +17% YoY and test +32% YoY. Q4 ATM gross margin was 26.3% (+3.7pp sequential, +3.0pp YoY) and ATM operating margin improved to 14.7% in Q4 (+3.9pp sequential, +4.0pp YoY). Full-year ATM gross margin was 23.5% (+1.0pp YoY) and operating margin 11.3% (+1.5pp YoY).
Consolidated 2025 net revenues improved ~8% YoY. Q4 consolidated revenues were NTD 177.9B, +6% QoQ and +10% YoY (USD: +2% QoQ, +14% YoY). Full-year gross profit increased 18% YoY to NTD 114.2B; consolidated gross margin improved to 17.7% (+1.4pp YoY). Net income for 2025 rose 25% YoY to NTD 40.7B. Q4 gross margin improved to 19.5% (+2.4pp QoQ, +3.1pp YoY).
Overall ATM utilization was around 80%, with Taiwan ATM factories running at or near full capacity and LEAP & advanced packaging utilization outpacing wirebond. Higher loading in Q4 delivered notable operating leverage: Q4 operating profit rose to NTD 17.7B (+$4.5B QoQ; +$6.5B YoY) and operating margin improved to 9.9% (+2.1pp QoQ, +3.0pp YoY).
2025 machinery & equipment CapEx totaled USD 3.4B (packaging USD 2.1B; testing USD 1.1B) and facilities investment was USD 2.1B. For 2026, management plans to add ~USD 1.5B more in machinery (on top of 2025), with ~2/3 allocated to leading-edge services, indicating continued capacity and technology investment to capture multi-year demand.
At year-end the company had cash, cash equivalents and current financial assets of NTD 102B, total unused credit lines of NTD 400.6B, EBITDA for the quarter of NTD 38.3B and net debt to equity of 46%, providing liquidity to fund planned CapEx.
Hello. I am Ken Hsiang , the Head of Investor Relations for ASE Technology Holdings. Welcome to our fourth quarter and full year 2025 earnings release. I'm joined today by Dr. Tien Wu, our COO; and Joseph Tung, our CFO. Thank you for attending our earnings release today. Please refer to our safe harbor notice on Page 2. All participants consent to having their voices and questions broadcast via participation in this event.
If participants do not consent, please do not ask questions or you may leave the session at this time. I would like to remind everyone that the presentation that follows may contain forward-looking statements. These forward-looking statements are subject to a high degree of risk, and our actual results may differ materially. For purposes of this presentation, dollar figures are generally stated in new Taiwan dollars unless otherwise indicated. As a Taiwan-based company, our financial information is presented in accordance with Taiwan IFRS. Results presented using Taiwan IFRS may differ materially from results using other accounting standards, including those presented by our subsidiaries. For today's presentation, Dr. Wu will be delivering the company's keynote.
I will be going over the financial results, and Joseph will then provide the company's guidance. We will then be available to take your questions during the Q&A session that follows. With that, let me hand the presentation over to Dr. Tien Wu.
Good afternoon. I would like to give you a 2, 3 years' outlook for the ASE business. This represents the best perspective that we have as of today from our ...