Taipei: ASE Technology Holding, the world’s largest semiconductor packaging and testing services provider, announced a robust growth outlook for its advanced packaging division, forecasting that this high-tech segment will expand to approximately $3.2 billion in annual revenue by 2026 about double its current size. The projection underscores Taiwan’s pivotal role in the global semiconductor ecosystem as demand for more powerful and compact chip solutions accelerates.
ASE executives detailed the forecast during a conference call following the company’s quarterly earnings report, which highlighted a 9.6 percent year-on-year increase in fourth-quarter revenue and a 58 percent surge in net income, reflecting healthy operational performance as industry demand strengthens.
Advanced packaging refers to next-generation methods of assembling semiconductor components such as system-in-package (SiP), wafer-level packaging (WLP), and flip-chip bumping that allow higher performance, greater energy efficiency, and compact form factors essential for applications in AI, high-performance computing, data centers, and mobile devices. These technologies are increasingly crucial as traditional scaling approaches face physical and economic limits.
ASE’s emphasis on these solutions aligns with broader industry trends. Revenue from advanced packaging and related services has grown significantly in recent years, driven by partnerships with global technology firms and expanding use cases for AI-driven systems. Analysts have noted that advanced packaging revenue could surge further as semiconductor makers seek to integrate more functions into smaller chips a shift vital to meeting evolving performance demands.
To support this ambitious growth trajectory, ASE has been boosting capital expenditures and expanding capacity. The company’s larger strategic plan includes investment in cutting-edge production technologies and facilities, including fan-out panel-level packaging (FOPLP) lines and new infrastructure aimed at scaling output for high-end customers.
In addition to technology upgrades, ASE has pursued strategic expansions in Taiwan and abroad to diversify its manufacturing footprint and strengthen supply chain resilience. For example, it acquired facilities and expanded its presence in regions such as Southeast Asia to better serve global customers and mitigate geographical risks inherent in semiconductor production.
ASE’s optimistic forecast comes amid robust investment across Taiwan’s semiconductor sector. Industry leaders such as Taiwan Semiconductor Manufacturing Co. (TSMC) are also significantly increasing capital expenditure to build and scale advanced chip fabrication and packaging capacity to satisfy surging demand from global customers.
Advanced packaging is now seen as one of the fastest-growing components of the semiconductor supply chain. With technologies like CoWoS (Chip-on-Wafer-on-Substrate) and heterogeneous integration gaining market traction, companies with strong capabilities in these areas such as ASE are well positioned to benefit from rapid growth in AI, edge computing, and next-generation mobile and networking devices.
Market analysts project that the global advanced packaging market will continue expanding sharply through the end of the decade, supported by substantial investments and increasing adoption of multi-chip, high-density solutions. Leading semiconductor firms are also forging deeper collaborations with packaging specialists to ensure supply continuity and technological leadership as competition intensifies.
ASE’s projection of reaching $3.2 billion in advanced packaging revenue by 2026 not only reflects its internal growth strategy and recent financial momentum, but also signals the rising importance of packaging technologies in shaping the future of semiconductor innovation. As demand for complex, high-performance computing solutions continues to rise, ASE’s role at the forefront of packaging services positions it as a key enabler of the next wave of technological advancement.