Semiconductor Services Provider ASE Posts Robust Growth and Strategic Expansion

ASE has unveiled a powerful combination of strong quarterly performance and strategic global expansion, reinforcing positive market sentiment. The semiconductor services firm reported substantial gains in both revenue and profitability while simultaneously advancing its international footprint through a key acquisition.

In a significant move for its global strategy, ASE entered into a binding agreement on October 21, 2025, to acquire Analog Devices' manufacturing facility located in Penang, Malaysia. This strategic acquisition is designed to enhance the company's worldwide presence and diversify its supply chain operations. The final agreement is scheduled for completion during the fourth quarter of 2025, with the transaction expected to conclude in the first half of 2026.

This acquisition includes a long-term supply arrangement that guarantees ASE will manufacture ADI's high-performance semiconductor products. Both companies have committed to joint investments in workforce development for the Malaysian facility, creating a mutually beneficial scenario for technological advancement and production capacity.

Third Quarter Financial Performance Exceeds Expectations

ASE's financial results for the third quarter of 2025 demonstrate comprehensive growth across key metrics. The company achieved net revenues of NT$168,569 million, representing an 11.8% increase from the previous quarter and a 5.3% year-over-year improvement. Profitability showed even stronger momentum, with net income climbing to NT$10,870 million compared to NT$9,733 million in the same quarter last year. The gross margin saw modest enhancement, reaching 17.1%.

Should investors sell immediately? Or is it worth buying ASE?

The core semiconductor assembly and testing (ATM) business delivered particularly strong results:
* Revenue expanded by 16.9% compared to the previous year
* Quarterly growth reached 8.3%
* Electronic manufacturing services (EMS) also demonstrated robust quarterly momentum with 17.4% growth

Record Capital Expenditures Target AI Market Opportunities

Looking ahead to the fourth quarter of 2025, ASE anticipates consolidated revenue growth between 1-2%, with its ATM segment projected to grow by 3-5%. The company's capital expenditure plans reveal an ambitious investment strategy, with planned expenditures approaching the US$6 billion threshold.

This substantial capital allocation toward advanced packaging technologies positions ASE to capitalize on the growing demand for artificial intelligence and high-performance computing chips. The record-level investments underscore management's confidence in the company's strategic direction within the evolving semiconductor landscape.