Question · Q3 2025
Bruce Liu asked for the revenue split between packaging and testing for the incremental $1 billion AI-related revenue expected in 2026. He also sought clarification on ASE's strategy for US operations, particularly concerning potential market share loss to competitors and foundry partners. Additionally, he questioned the CapEx to revenue ratio and the timeline for revenue generation from investments, noting the discrepancy between current CapEx and projected incremental revenue.
Answer
CFO Joseph Tung stated that for this year's $1 billion LEAP increase, the split was $650 million from packaging and $350 million from test, with test showing stronger momentum. He reiterated that ASE pursues market share only when it makes economic sense, emphasizing that US investments require a viable infrastructure and cost structure beyond just premium pricing. Tung clarified that not all CapEx is for leading edge (55% this year) and that capacity expansion is progressive. He maintained that the traditional $1 investment generating $1 annual revenue still applies for OSAT and test, projecting at least $1 billion in new leading-edge revenue for 2026.