ASE Technology's stock soared 5.00% in post-market trading on Wednesday, following the release of its robust first-quarter financial results and announcements of strategic capacity expansion.
The company reported quarterly revenue of $5.44 billion, beating market consensus by 2.64%. Its March consolidated net revenue reached NT$61.58 billion, marking a 14.6% year-over-year increase and an 18.2% sequential rise. The core ATM business delivered particularly strong performance, with Q1 revenue surging 29.7% year-over-year to NT$112.43 billion, driven by sustained downstream packaging and testing demand.
Profitability metrics also improved significantly, with gross margin expanding by 3.3 percentage points to 20.1% and operating margin rising 3.6 percentage points to 10.1%. The company is expanding its production capacity through the acquisition of Innolux's Southern Taiwan Fab5 facility and the groundbreaking of a new plant at the Kaohsiung Renwu Industrial Park, aimed at meeting high-end testing demand for AI, high-performance computing, and automotive electronics.
Advanced chip packaging revenue is projected to grow 10% to over $3.5 billion, primarily driven by AI chip demand. Additionally, better-than-expected Q1 results from key customer Intel have reinforced confidence in ASE Technology's forward order pipeline.
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