ASE Technology Holding Co., Ltd. (ASX): Business Model Canvas [Dec-2025 Updated]

You're looking for the real story behind ASE Technology Holding Co., Ltd.'s massive footprint in the semiconductor world, and honestly, it all boils down to AI and who can package the fastest. As a former BlackRock analyst, I can tell you this isn't just about scale anymore; it's about their leading-edge advanced packaging (LEAP) technology keeping pace with giants like NVIDIA, which is why they've earmarked up to US$6 billion in CapEx for 2025. We need to look past the surface to see how their core Assembly, Test, and Packaging (ATM) business balances against the 42% revenue contribution from their Electronic Manufacturing Services (EMS) arm, all while managing raw material costs that hit 49% of Q1 2025 revenue. Dive into the canvas below to see the exact structure driving this capital-intensive growth.

ASE Technology Holding Co., Ltd. (ASX) - Canvas Business Model: Key Partnerships

You're mapping out the core relationships for ASE Technology Holding Co., Ltd., and honestly, the strength of their external network is what keeps the whole operation running, especially given the current AI boom. Here's a breakdown of the key partnerships that define their operational resilience and growth trajectory as of late 2025.

Major Fabless and IDM Clients

ASE Technology Holding Co., Ltd.'s business is heavily reliant on a concentrated customer base, particularly within the high-performance computing and AI sectors. For the Assembly, Testing, and Manufacturing (ATM) basis, the top five customers accounted for approximately 43% of total net revenues in the second quarter of 2025 (2Q25). To be defintely clear, the top ten customers drove 60% of the ATM net revenues in 2Q25. Integrated Device Manufacturers (IDMs) represented a significant portion, making up 35% of the ATM net revenues in 2Q25, up from 34% in the first quarter of 2025 (1Q25). One single customer, which could be a major player like NVIDIA or AMD, contributed more than 10% of the total net revenues in 2Q25. This concentration is a key feature of the business model.

The Electronic Manufacturing Services (EMS) side shows even higher concentration, with the top five customers accounting for about 65% of net revenues in 2Q25, and the top ten customers at 71%.

Here's a quick look at the customer concentration for the ATM segment:

Key Substrate and Material Suppliers for Supply Chain Resilience

Supply chain resilience is non-negotiable, so ASE Technology Holding Co., Ltd. actively manages relationships with material providers. Nan Ya PCB Co., Ltd. and Shinko Electric Industries Co., Ltd. are noted partners in this critical area. The dependency on these materials means lead times directly impact production schedules. For instance, lead times for certain substrates, like those using Bismaleimide triazine (BT) which require glass yarn, are stretching out, with waits reported around 25 weeks for substrate makers.

ASE Technology Holding Co., Ltd. recognized its top suppliers in April 2025, with 450 representatives from over 140 suppliers attending the 'Best Suppliers of 2024' awards ceremony. 17 companies were recognized based on performance, including ESG metrics.

Strategic Collaboration for Technology Development

The collaboration with Analog Devices, Inc. (ADI) is a major strategic move announced in late 2025. ASE Technology Holding Co., Ltd. intends to purchase 100% of the equity of Analog Devices Sdn. Bhd., which includes its Penang manufacturing facility covering over 680,000 square feet. This is coupled with a long-term supply agreement where ASE will provide manufacturing services for ADI. Furthermore, ADI plans to co-invest with ASE in upskilling the Penang facility. Definitive agreements are expected in the fourth calendar quarter of 2025, with closing anticipated in the first half of 2026.

Affiliate Hung Ching Development & Construction for Land Development

Internal real estate expertise is leveraged through affiliate Hung Ching Development & Construction Co. Ltd. (Stock code: 2527). ASE Technology Holding Co., Ltd.'s board approved two major plans in November 2025 involving this affiliate. First, the subsidiary Advanced Semiconductor Engineering Inc. will buy a newly built factory from Hung Ching in Zhongli District, Taoyuan, for approximately NT$4.23 billion (US$134 million). Second, ASE will work with Hung Ching to develop a new factory in Nanzih District, Kaohsiung. Separately, a new Kaohsiung plant, K18B, represents a NT$17.6 billion investment, with an expected annual output value of NT$12 billion per hectare.

Equipment Suppliers and Net Zero Goals

To meet its commitment to achieve Net Zero by 2050 and reduce energy consumption by 20% by 2030, ASE Technology Holding Co., Ltd. is working directly with its equipment partners. The company is collaborating with 19 equipment suppliers specifically to scale up energy-efficient designs. Equipment capital expenditures in 2Q25 totaled US$992 million, showing ongoing investment in the operational base supporting these sustainability targets.

• Equipment suppliers recognized in the 2024 awards ceremony included Canon Semiconductor Equipment Taiwan, Inc. and Tokyo Electron Limited.
• Certificates of appreciation were given to 8 suppliers that participated in ASE's carbon inventory project and obtained third-party verification.
• The company is also implementing internal carbon pricing across its three major subsidiary groups.

Finance: draft 13-week cash view by Friday.

ASE Technology Holding Co., Ltd. (ASX) - Canvas Business Model: Key Activities

The Key Activities for ASE Technology Holding Co., Ltd. center on high-precision manufacturing services for the semiconductor industry, heavily weighted toward advanced packaging and testing to support AI and high-performance computing demand.

Outsourced Semiconductor Assembly and Test (OSAT) services (ATM business)

The core of ASE Technology Holding Co., Ltd. operations falls under the Assembly and Test Materials (ATM) business. For the first quarter of 2025, net revenues for the ATM business were reported at NT$86,668 million. This represented a year-over-year increase of 17.3%, though it was down 1.9% compared to the fourth quarter of 2024. By the third quarter of 2025, consolidated net revenues reached NT$168.57 billion, equivalent to $5.66 billion USD.

The overall revenue mix for the consolidated business in the third quarter of 2025 showed the following approximate distribution:

For the first quarter of 2025, the distribution was similar, with Packaging at 46%, Testing at 11%, and EMS at 42% of total net revenues. The company has a significant customer concentration, as its five largest customers accounted for approximately 68% of total net revenues in the first quarter of 2025.

Advanced packaging R&D and mass production (CoWoS, FOCoS, FOPLP)

Advanced packaging is a major focus, with management projecting that advanced packaging revenue for the full year 2025 will reach US$1.6 billion as planned. The company has invested heavily to expand capacity for 2.5D packaging demand, such as CoWoS. Furthermore, customers are considering adopting ASE Technology Holding Co., Ltd.'s in-house FOCoS technology, with positive developments expected as early as the second half of 2026. In the third quarter of 2025 remarks, advanced packaging technologies, which include bump, flip-chip (FC), wafer-level packaging (WLP), and system-in-package (SiP), accounted for 48% of the total packaging and testing revenue.

The projected distribution for the combined advanced packaging and testing revenue for the full year 2025 is expected to be:

• 65% from advanced packaging.
• 35% from advanced testing.

Wafer probing and final testing, with wafer testing prioritized in 2025

ASE Technology Holding Co., Ltd. is the largest provider of outsourced test services globally. The company is aggressively moving into final tests, expecting the test business to reach between 19% to 20% of overall ATM revenue by the end of 2025. The growth rate for advanced testing operations in 2025 is projected to be twice that of advanced packaging. Current capacity expansion plans explicitly prioritize wafer testing over final testing in 2025. The company has the largest installed base of test equipment among independent service providers.

Capital expenditure allocation in the first quarter of 2025 showed significant investment in testing operations:

• Machinery and equipment capital expenditures for 1Q25 totaled US$892 million.
• Of that, US$472 million was used in testing operations in 1Q25.
• In 2Q25, testing operations received US$251 million of the total US$992 million in machinery and equipment CapEx.

Electronic Manufacturing Services (EMS) through subsidiary USI

The Electronic Manufacturing Services (EMS) segment, primarily through the subsidiary USI, reported net revenues of NT$62,295 million for the first quarter of 2025. This represented a year-over-year increase of 4.9%, but a sequential decline of 16.8%. The gross margin for the EMS segment in 1Q25 was 8.9%. In 1Q25, EMS operations accounted for approximately 42% of total consolidated net revenues.

Global capacity expansion, with US$6 billion CapEx planned for 2025

To meet demand, ASE Technology Holding Co., Ltd. has raised its 2025 capital expenditure for the fourth time, bringing the total annual investment to as much as US$6 billion. This massive investment is intended to ensure customer demand is met, especially with strong demand expected into 2026. The company's overall machinery and equipment CapEx in the first quarter of 2025 was US$892 million, with US$395 million going to packaging operations. For the second quarter of 2025, packaging operations received US$690 million of the US$992 million total machinery and equipment CapEx. Earlier guidance indicated that 60% of the 2025 CapEx would be allocated to leading-edge packaging and over 30% to testing.

ASE Technology Holding Co., Ltd. (ASX) - Canvas Business Model: Key Resources

You're looking at the core assets that let ASE Technology Holding Co., Ltd. dominate the outsourced semiconductor assembly and test (OSAT) space. These aren't just line items on a balance sheet; they are the physical and intellectual foundations of their market power, especially as AI and High-Performance Computing (HPC) demand explodes.

Global Footprint and Manufacturing Scale

The sheer scale of ASE Technology Holding Co., Ltd.'s physical presence is a massive barrier to entry for competitors. They operate manufacturing facilities across a wide geography, which helps with supply chain resilience and customer proximity. While they are headquartered in Taiwan, their footprint extends globally, but Asia remains the core production engine.

Here's a snapshot of where they put their manufacturing muscle:

• Facilities in Taiwan, with recent expansion approvals in Taoyuan and Kaohsiung.
• Operations in China, South Korea, Japan, Singapore, Malaysia, and Vietnam.
• The Malaysia site, for example, is expanding its floor space from 1 million square feet to approximately 3.4 million square feet.

This network isn't static; they are actively building new capacity, like the K18B plant in Kaohsiung, to handle the next wave of advanced packaging needs.

Advanced Packaging Intellectual Property (IP)

The real value here is in the proprietary know-how that allows them to handle the most complex chips. Their IP portfolio is critical for enabling the high-density, high-speed interconnects required by modern AI accelerators.

ASE Technology Holding Co., Ltd. has pushed the envelope with several key technologies:

• FOCoS (Fan-Out Chip on Substrate): They have demonstrated advanced iterations like FOCoS-CF (Chip First) and FOCoS-CL (Chip Last) for multi-chip integration.
• FOCoS-Bridge with TSV (Through Silicon Via): This innovation specifically targets next-generation AI and HPC demands, showing a reduction in power loss by up to 3x.
• The new K18B plant is set to offer both CoWoS (Chip-on-Wafer-on-Substrate) and FOCoS capabilities.

These IP assets translate directly into securing backlogs, with sources expecting an order backlog for AI-related CoWoS services extending into 2027.

Financial Capital and Liquidity

You need deep pockets to fund the constant, multi-billion-dollar capital expenditures required in this industry. ASE Technology Holding Co., Ltd. maintains significant financial flexibility to fund these necessary upgrades and acquisitions.

As of the third quarter of 2025, the company reported substantial access to capital:

This strong liquidity position allows them to commit significant CapEx, with equipment spending potentially rising up to $3 billion in 2025.

Human Capital

The complexity of advanced packaging and testing requires a massive, specialized talent pool. You can't automate deep engineering expertise overnight.

The scale of their workforce as of September 30, 2025, is a key resource:

• Total skilled workforce: 103,844 employees.

This large team supports operations globally, including significant R&D staff-up efforts.

High-End Testing Equipment

Testing is the final gate before a chip reaches the customer, and for AI/HPC, this means extremely high-power and high-reliability testing protocols. ASE Technology Holding Co., Ltd. is strategically directing capital toward this segment.

The commitment to testing capacity is clear in their spending allocation:

• In Q2 2025, capital expenditures for testing operations totaled $251 million.
• The company is increasing the budget slice for chip testing business, from an original estimate of 18 percent to about 24 percent of the total CapEx budget.
• They have expanded advanced chip testing capacity, such as burn-in testing, by launching a second testing facility in San Jose, California, through its subsidiary ISE Labs Inc.

This investment ensures they can handle the qualification and reliability processes for the most demanding AI and HPC components.

ASE Technology Holding Co., Ltd. (ASX) - Canvas Business Model: Value Propositions

You're looking at the core reasons why customers choose ASE Technology Holding Co., Ltd. for their most demanding semiconductor needs as of late 2025. It boils down to sheer scale, technological depth, and a comprehensive service offering.

World's largest provider of IC packaging and testing services.

ASE Technology Holding Co., Ltd. stands as the world's largest IC packaging and testing services provider. This scale means deep integration across the supply chain, positioning the company as the largest OSAT provider (Outsourced Semiconductor Assembly and Test). The sheer volume capability is a key draw for major chipmakers.

Leading-edge advanced packaging (LEAP) for AI/HPC with high utilization rates.

The value proposition here is direct access to high-growth, high-margin technology. Advanced packaging technologies, which include bump, flip-chip (FC), wafer-level packaging (WLP), and system-in-package (SiP), accounted for 48% of total packaging and testing revenue in the third quarter of 2025. Management targeted advanced packaging revenue to reach US$1.6 billion for the full year 2025. In the first quarter of 2025, LEAP services represented 10% of overall ATM revenues, a clear step up from 6% for the full year 2024. You see the immediate impact of this demand:

This high utilization, especially in critical areas, underpins profitability expectations, with the company confident that the ATM gross profit margin will return to the structural range in the whole year of 2026.

One-stop-shop for assembly, testing, and electronic manufacturing (ATM and EMS).

ASE Technology offers a complete suite of services spanning Assembly, Testing, and Materials (ATM) alongside Electronic Manufacturing Services (EMS). The ATM segment is the primary growth engine, with full-year 2025 ATM revenue in USD projected to increase by more than 20% from the prior year. Within ATM, the testing business is outpacing packaging growth; its revenue growth is expected to be twice that of packaging in 2025. By the end of 2025, the test business is targeted to account for between 19 to 20% of overall ATM revenue. For context on the scale of the ATM business, Q2 2025 net revenues hit NT$92,565 million.

Proprietary technology like FOCoS to address tight CoWoS supply.

To directly counter the tight supply for advanced 2.5D packaging like CoWoS, ASE is pushing its proprietary solutions. Several customers are reportedly looking at adopting ASE's in-house FOCoS (Fan-Out Chip on Substrate) technology, with positive developments anticipated as early as the second half of 2026. This technology is suitable for large package sizes and high input-output density designs for networking and server applications. Furthermore, the company announced FOCoS-Bridge with Through Silicon Via (TSV) in May 2025, a technology that reduces power loss by 3x for next-generation AI and HPC applications. Future capacity expansion, like the K18B plant slated for Q1 2028, will explicitly include CoWoS plus FOCoS capabilities.

High-quality, high-volume manufacturing scale and speed.

The commitment to scale is evident in the capital deployment. Total 2025 capital expenditure is projected to reach as much as US$6 billion, an increase from 2024's $1.9 billion in machinery CapEx alone. This aggressive investment is aimed at meeting demand, with management anticipating 2026 revenue growing by an additional $1 billion. The speed of response is shown by the Q3 2025 results, where consolidated net revenues grew 11.8% sequentially.

• Machinery CapEx in 2024: $1.9 billion.
• Projected 2025 Equipment Capital Spending: Up to $3 billion.
• Projected 2026 Revenue Growth: An additional $1 billion.

Finance: draft 13-week cash view by Friday.

ASE Technology Holding Co., Ltd. (ASX) - Canvas Business Model: Customer Relationships

You're looking at how ASE Technology Holding Co., Ltd. (ASX) manages its most critical asset: its relationships with the semiconductor giants it serves. This isn't just transactional; it's deeply embedded strategic alignment, especially given the current AI-driven capacity crunch.

Close, long-term strategic engagement with key clients on capacity planning.

The relationship structure is inherently concentrated, which speaks to the long-term nature of the partnerships required for advanced packaging. For the second quarter of 2025 (2Q25), the top 10 customers accounted for 71% of total net revenues. That's down slightly from 74% in the first quarter of 2025 (1Q25), suggesting a modest diversification or perhaps a slight easing in the concentration of the very largest orders, but still showing heavy reliance on a core group. This concentration necessitates deep, ongoing dialogue about future needs. For instance, loading on the Leading-Edge Advanced Packaging (LEAP) and traditional advanced packaging lines was reported as generally full coming out of the third quarter of 2025 (Q3 2025). Furthermore, flip-chip and wafer bumping production lines are running at full capacity. This level of utilization means capacity planning isn't a quarterly check-in; it's a multi-year commitment to secure future wafer allocation.

Here's a snapshot of that capacity and customer concentration:

Shift toward proactive capacity pre-booking by customers.

Because capacity is so tight, especially for the high-demand AI and High-Performance Computing (HPC) chips, customer behavior has fundamentally changed. You're seeing a clear shift away from simply reacting to orders. Customer ordering behavior has become more proactive, moving from a demand-driven approach to pre-booking capacity in advance. This is a strong signal of customer confidence in ASE Technology Holding Co., Ltd.'s role in their long-term roadmaps. This pre-booking extends to securing upstream raw material supply, which is a direct result of the tight market supply and demand for advanced nodes.

Dedicated investor relations and transparent financial reporting.

Maintaining trust with the broader financial community is key, and ASE Technology Holding Co., Ltd. supports this with regular, detailed disclosures. For example, the Head of Investor Relations, Ken Shung, hosted the Q3 2025 Earnings Conference on October 30, 2025, providing detailed performance metrics. The company reports financials under Taiwan IFRS and provides data in both New Taiwan Dollars (NT$) and US Dollars (USD) for international clarity. You can track their commitment to transparency through their regular releases, such as the 2025 October Monthly Revenues released on November 10, 2025.

Key IR/Reporting Facts:

• Head of Investor Relations: Ken Shung (or Ken Hsiang).
• Q3 2025 Earnings Call Date: October 30, 2025.
• Consolidated Net Revenues (Q3 2025): NT$168.6 billion.
• Projected 2026 Revenue Increase: An additional $1 billion over 2025.

High-touch, technical sales for complex advanced packaging solutions.

The growth in the most advanced services requires a sales approach that is highly technical and consultative. The focus on Leading-Edge Advanced Packaging (LEAP) is a prime example. In 1Q25, LEAP services made up 10% of the total ATM revenues, a significant jump from the 6% seen in the full year 2024. This segment, critical for AI accelerators, demands deep technical collaboration. Furthermore, the company is expanding its final test capacity, expecting mass production of next-generation AI chips in the second half of 2026 to drive significant final testing revenue. For the full year 2025, the distribution of advanced packaging and testing revenue is planned as 65% from advanced packaging and 35% from advanced testing. This technical depth is what secures those long-term, high-value contracts.

ASE Technology Holding Co., Ltd. (ASX) - Canvas Business Model: Channels

You're looking at how ASE Technology Holding Co., Ltd. gets its advanced packaging, testing, and EMS services into the hands of its customers. It's a multi-pronged approach, balancing direct, high-touch sales with broad distribution networks. The company leverages its scale, operating across 15 countries as of September 2025, to maintain this global reach.

The direct engagement channel is critical for the high-value Advanced Technology Manufacturing (ATM) segment, which is the primary growth engine. This involves a dedicated direct sales force targeting major global semiconductor companies, specifically the fabless designers and Integrated Device Manufacturers (IDMs) who need cutting-edge solutions like the VIPack™ platform.

The physical footprint supports this sales effort, with global manufacturing and sales offices strategically placed across Asia, Europe, and the US. For instance, the company has facilities listed in Taiwan, China, Korea, Japan, Singapore, Malaysia, and the USA. This physical presence helps manage the complex supply chain and provides local support for global clients.

For the Electronic Manufacturing Services (EMS) side, the channel is heavily routed through the subsidiary, USI. USI handles the design, manufacturing, and sales of electronic components and motherboards, acting as a distinct distribution arm for that service line. The relative importance of these segments, based on Q1 2025 revenue contribution, shows the split in channel focus:

Direct engagement with foundry partners is a key channel for capacity expansion, especially for the most advanced products. ASE Technology Holding Co., Ltd. is working directly with these partners to co-expand capacity for demanding technologies like 2.5D packaging, such as CoWoS. This collaborative channel ensures that the necessary capacity is aligned with customer needs, particularly for AI and High-Performance Computing (HPC) chips. The company is aggressively investing, raising its 2025 capital expenditure to as much as US$6 billion to meet these customer requests. The Advanced Packaging revenue for 2025 was planned to reach US$1.6 billion.

The overall strategy relies on these channels to deliver the consolidated net revenues, which reached NT$168.57 billion (approximately $5.66 billion USD) in Q3 2025. The company has a substantial workforce of approximately 103,000 employees globally as of September 2025 to support these sales and delivery channels.

You should track the revenue growth of the ATM segment, which saw its USD revenue grow 27% annually in Q3 2025, as this directly reflects the success of the direct sales force targeting high-end clients.

• Direct sales target fabless/IDMs for high-value ATM services.
• Global offices span 15 countries for localized support.
• USI acts as the dedicated channel for the 42% EMS revenue share (Q1 2025).
• Foundry partnerships secure capacity for 2.5D/CoWoS demand.
• Total 2025 forecasted revenue is about $20.54 billion USD.

Finance: draft 13-week cash view by Friday.

ASE Technology Holding Co., Ltd. (ASX) - Canvas Business Model: Customer Segments

You're looking at the core groups driving revenue for ASE Technology Holding Co., Ltd. (ASX) as of late 2025. This isn't just about selling a service; it's about embedding deep within the supply chains of the most demanding technology sectors. The customer base is clearly bifurcated across the Advanced Technology Manufacturing (ATM) and Electronic Manufacturing Services (EMS) arms of the business.

For the first quarter of 2025 (1Q25), the company reported total net revenues of NT$148,153 million. You can see how the ATM business, which handles the high-end packaging and testing, is the larger revenue generator compared to the EMS side.

The concentration risk is something to watch; for 1Q25, the five largest customers collectively represented approximately 44% of the total net revenues. That's a significant portion tied to a small group of industry giants.

High-Performance Computing (HPC) and Artificial Intelligence (AI) chip designers

These designers are the engine for the ATM segment's growth, particularly in advanced packaging. During 1Q25, the computing segment saw its relative positioning in the ATM revenue mix take a 'big step up.' This was directly attributed to the stable high demand nature of AI products, even as handset and other communications devices faced seasonal impacts.

Fabless semiconductor companies and Integrated Device Manufacturers (IDMs)

These are the foundational clients for the ATM business. The ATM segment delivered strong year-over-year growth, with net revenues in 1Q25 up 17.3% compared to 1Q24. The test business, specifically, continued its strong momentum, growing 2% in what is usually a seasonally softer quarter.

Automotive, communications, and consumer electronics device makers (EMS clients)

These clients form the core of the EMS business. For 1Q25, the EMS net revenues were NT$62,295 million, showing a 4.9% increase year-over-year. Looking at the third quarter (3Q25), the application mix showed a seasonal ramp-up in the consumer segment, which grew its application share, while other segments declined relatively.

ASIC and Edge AI developers driving demand for advanced packaging

This group is directly fueling the need for the most sophisticated services. Leading-Edge Advanced Packaging (LEAP) services within the ATM business are clearly a growth vector. In 1Q25, LEAP services made up 10% of total ATM revenues, a significant jump from the 6% share they held for the full year 2024. The company is putting capital behind this trend; they allocated US$200 million (approximately NT$5.88 billion) to new Fan-Out Panel-Level Packaging (FOPLP) production infrastructure in 2025, with commercial shipments anticipated before the end of the year.

Key technology adoption metrics include:

• LEAP services revenue share in ATM: 10% as of 1Q25.
• 2024 LEAP revenue: Exceeded USD 600 million.
• 2025 FOPLP capital allocation: US$200 million.
• ATM test business growth (1Q25 vs 4Q24): 2%.

The overall ATM business saw record revenues in 3Q25 of NT$100.3B, up 27% year-over-year on a US dollar basis, showing the high-value nature of the packaging and testing work these advanced chip designers require.

ASE Technology Holding Co., Ltd. (ASX) - Canvas Business Model: Cost Structure

You're looking at the core expenses driving ASE Technology Holding Co., Ltd. (ASX) operations as of late 2025, which is heavily weighted toward material and massive, ongoing capital investment. These costs define the scale and technological intensity of their semiconductor assembly and testing business.

Raw material costs are the largest component, representing exactly 49% of 1Q25 consolidated net revenues. This figure is based on the NT$72,343 million recorded for raw materials during that quarter. Honestly, in this industry, material input costs are always the primary driver of the cost of goods sold.

The commitment to future capacity is evident in the massive capital expenditure (CapEx) for expansion. ASE Technology Holding Co., Ltd. (ASX) has raised its 2025 equipment CapEx target to US$5.5 billion to cope with strong customer demand, particularly for artificial intelligence applications. This aggressive spending supports the necessary ramp-up in leading-edge packaging and testing capacity. For context, equipment CapEx in 1Q25 alone totaled US$892 million, and machinery and equipment spending in 3Q25 was $779 million.

Labor costs are a significant, but secondary, expense category. For the first quarter of 2025, labor costs totaled NT$16,997 million, which equated to 11% of the consolidated net revenues for that period. This reflects the specialized nature of the workforce required for advanced processes.

High depreciation and amortization charges directly reflect the prior years' and ongoing factory and equipment investments. For 1Q25, depreciation, amortization, and rental expenses were reported at NT$14.672 billion. This non-cash charge is a direct consequence of maintaining a world-class, high-asset base.

The company incurs significant R&D investment to stay ahead in advanced packaging and testing technologies. This investment is visible in the operating expenses, which saw sequential and annual increases in 1Q25 due to a continued R&D staff-up and labor-related costs preparing for higher leading-edge revenues. Similarly, 3Q25 operating expenses were up primarily due to higher R&D costs.

Here's a quick look at the major cost components from the 1Q25 Consolidated results:

The cost structure is also influenced by specific business segments, showing where the cost intensity lies:

• EMS segment raw material cost was 79% of its segment net revenues in 1Q25.
• ATM segment labor cost was 16% of its segment net revenues in 1Q25.
• ATM segment depreciation, amortization and rental expenses were NT$13,238 million in 1Q25.

Finance: draft 13-week cash view by Friday.

ASE Technology Holding Co., Ltd. (ASX) - Canvas Business Model: Revenue Streams

You're looking at the core ways ASE Technology Holding Co., Ltd. brings in money, which is heavily weighted toward its main service line. The foundation of the revenue generation is the Semiconductor Assembly and Test (ATM) services, which is the company's core business. This segment is clearly the largest driver of top-line performance, especially with the current AI-driven demand cycle.

To give you a clear picture of the revenue mix as of the latest full quarter, here is how the major segments contributed to the Q3 2025 consolidated net revenues of NT$168,569 million (or US$5,663 million).

The Electronic Manufacturing Services (EMS) segment, while significant, showed a different trend in Q3 2025 compared to the core ATM business. You should note that for 1Q25, the EMS segment accounted for 42% of total net revenues. By Q3 2025, the EMS revenues were NT$69,022 million, which was up sequentially by 17.4% but down year-over-year by 8.4%. This sequential bounce suggests some seasonality or inventory adjustments within that specific service offering.

The real excitement, and a major focus for future revenue, is in the high-end services. The Advanced packaging revenue is firmly on track to reach US$1.6 billion for the full-year 2025. This is a massive jump from prior years, showing the success of their leading-edge investments. The growth within the ATM segment itself is unevenly distributed, which is important for understanding profitability drivers.

Here are the key details on the growth drivers within the ATM business for 2025 and beyond:

• Advanced packaging revenue for full-year 2025 targeted at US$1.6 billion.
• Full-year 2025 ATM revenue in U.S. dollar terms is projected to grow over 20% year-over-year.
• For the full-year 2025 distribution of advanced packaging and testing revenue, 65% is expected from advanced packaging.
• The testing business growth rate is projected to be twice that of advanced packaging in 2025.
• Leading-edge advanced packaging and testing revenue is targeted to grow by an additional US$1 billion in 2026.

The ATM segment's performance in Q3 2025 clearly shows the strength of specialized services; for instance, the test business revenue was up 30% annually, outpacing assembly. The company is definitely prioritizing capacity expansion to capture this high-value work, which is where the real margin improvement is expected to come from. Finance: draft 13-week cash view by Friday.