Taipei:ASE Technology Holding Co., the world's largest integrated circuit packaging and testing service provider, has increased its 2026 sales forecast for its advanced assembly and testing operations to $4 billion, up from a previous estimate of $3.7 billion.

According to Focus Taiwan, ASE's Chief Financial Officer Joseph Tung, speaking at an investor conference, projected that 2027 will see even better results, with revenue from these operations expected to double from the 2026 figures.

ASE has also decided to boost its capital expenditure budget by $1 billion, raising it to $11.5 billion, in response to strong global demand for AI applications. Half of this additional budget will be allocated to new plant construction, while the other half will be dedicated to purchasing new equipment, with 60% of these purchases supporting their leading-edge assembly and testing operations.

During the investor conference, ASE reported a record net profit of NT$26.996 billion for the third quarter, a 148% increase from the previous year, with earnings per share rising to NT$6.13 from NT$2.50. The company also achieved consolidated sales of NT$244.16 billion for the July-September period, marking a 44.8% year-over-year increase and a 27.8% rise from the prior quarter, outperforming an earlier growth estimate of 21-22%.

The gross margin for the third quarter reached a new high of 22.1%, a 1.1 percentage point increase from the second quarter. Tung indicated that the company's gross margin is expected to improve further in the fourth quarter, reaching 23-24%, and rise even more by 2027.

ASE's consolidated sales are projected to grow by 6-8% from the third quarter based on an exchange rate of NT$31.9 against the U.S. dollar. In the first nine months of the year, ASE recorded a net profit of NT$62.19 billion, up 139% from the previous year, with earnings per share at NT$14.17. Consolidated sales for the same period rose by 30.25% to NT$608.89 billion, with a gross margin of 21.17%.