ASE Technology's stock surged 5.07% in post-market trading, driven by a combination of strong financial results and a significant capital investment announcement.
The rally follows the company's report of robust first-quarter earnings, with March consolidated net revenue increasing 18.2% month-over-month and 14.6% year-over-year. The core ATM (Assembly, Test & Materials) segment delivered outstanding performance, with Q1 revenue surging 29.7% year-over-year, indicating strong downstream demand for advanced packaging and testing services.
Furthermore, ASE recently broke ground on a major new facility at the Renwu Industrial Park in Kaohsiung. The project represents a total investment exceeding NT$108.3 billion (approximately $2.33 billion) and will focus on high-end semiconductor testing for growth sectors including AI, high-performance computing, 5G, and automotive electronics. The first phase of the facility is scheduled to begin operations by April next year.