ASE lifts 2026 capex to record US$10.5 billion, expects LEAP revenue to double in 2027

ASE’s capital expenditure hike to $10.5 billion signals a strong demand pull from AI-driven advanced packaging, triggering upstream investments in wafer fabrication and equipment suppliers, especially in EUV, TSV, and silicon interposers. From a policy perspective, geopolitical tensions between Taiwan, China and the U.S. are increasing operational risks and supply chain disruptions, forcing ASE to navigate rising costs and potential bottlenecks. Competitors like TSMC, Winbond, and SMIC may accelerate capacity expansion in packaging to capture AI chip backend demand. Over the next 12–24 months, the packaging and testing segment is poised to become a critical bottleneck in AI compute scaling. ASE’s aggressive capital push indicates a new round of capacity competition, where technology and capital convergence will likely lead to further industry consolidation.