Taipei, Taiwan — ASE Technology Holding Co., the world’s largest provider of integrated circuit (IC) packaging and testing services, reported a solid performance for October, with its consolidated sales reaching a 23-month high.
According to a statement issued by ASE Technology on Monday, the company posted NT$56.43 billion (approximately US$1.75 billion) in sales for October. This marks a 1.5% increase compared to September and a 0.5% increase year-on-year, making October the best month in terms of sales since November 2022.
Despite the uptick in sales, ASE Technology did not provide specific reasons for the growth in its October performance. However, industry analysts have pointed to the continuing demand for semiconductor packaging services and the growing importance of artificial intelligence (AI) as contributing factors to the company’s strong results.
Solid Year-to-Date Performance
For the first ten months of 2024, ASE Technology reported a 2.53% increase in its consolidated sales, which totaled NT$489.57 billion (around US$15.35 billion), compared to the same period last year.
The company has been actively working to diversify and expand its service offerings, particularly in high-end semiconductor packaging and testing services, to keep pace with the evolving demands of the global semiconductor market.
Despite the impressive performance in the first ten months, market analysts predict that ASE Technology’s sales could see a slight dip in the fourth quarter due to seasonal effects. Analysts forecast a 1% decline in quarterly sales, projecting a total of around NT$159.0 billion in the final quarter of 2024.
Key Factors Driving ASE Technology’s Growth
ASE Technology’s growth comes at a time when advanced semiconductor packaging is experiencing heightened demand, especially in response to the rapid expansion of artificial intelligence (AI) applications. The company has been investing heavily in high-end packaging technologies, including 3D Chip-on-Wafer-on-Substrate (CoWoS), which is used in advanced IC assembly for AI chips.
The company has plans to double its CoWoS production capacity by 2025, with a target of manufacturing 10,000 CoWoS-based chips per month. This move is seen as a direct response to the increasing demand for AI processing power, which requires more advanced and efficient semiconductor technologies.
ASE Technology has also outlined its long-term plans to ramp up sales from its advanced assembly and testing services. The company expects sales from this segment to increase by approximately 100% by 2025, signaling its continued investment in cutting-edge technologies.
ASE Technology’s Expansion into Mexico
In addition to its technological investments, ASE Technology is also focusing on global expansion. Last week, the company announced its decision to invest in Mexico, purchasing a significant parcel of land to build a new IC packaging and testing base.
This move is part of ASE Technology’s strategy to diversify its production and extend its manufacturing footprint outside of Taiwan, providing the company with greater access to the North American market while mitigating risks associated with geopolitical tensions and supply chain disruptions.
Table: ASE Technology Sales Overview
| Month | Sales (NT$ Billion) | Month-on-Month Change | Year-on-Year Change |
|---|---|---|---|
| October 2024 | 56.43 | +1.5% | +0.5% |
| November 2022 | 60.11 | – | – |
| First 10 months of 2024 | 489.57 | +2.53% | – |
FAQ: ASE Technology’s October Sales and Future Outlook
1. What were ASE Technology’s sales for October 2024?
ASE Technology reported NT$56.43 billion (US$1.75 billion) in consolidated sales for October 2024, marking a 1.5% increase compared to the previous month and a 0.5% year-on-year growth.
2. What is driving ASE Technology’s sales growth?
ASE Technology’s growth is largely attributed to the high demand for semiconductor packaging services, especially for AI applications. The company’s investment in advanced packaging technologies like 3D CoWoS has also contributed to its strong performance.
3. How is ASE Technology expanding its operations?
ASE Technology is expanding its operations by increasing its focus on advanced IC assembly and testing services, as well as ramping up production of CoWoS technology. The company is also investing in Mexico to build a new IC packaging base.
4. What are the projections for ASE Technology’s fourth-quarter sales?
Analysts predict that ASE Technology’s sales for the fourth quarter of 2024 could decline by 1% compared to the third quarter, with an estimated total of NT$159.0 billion in sales.
5. What are ASE Technology’s long-term goals?
ASE Technology plans to double its monthly production of CoWoS-based chips by 2025, and it expects sales from advanced assembly services to grow by 100% over the next two years.
Conclusion: ASE Technology’s Strong Performance and Future Growth
ASE Technology’s strong sales performance in October 2024, marking a 23-month high, is a clear indication of the company’s ability to navigate a competitive semiconductor industry. With a focus on advanced packaging technologies, including CoWoS for AI chips, and expansion into new markets like Mexico, ASE Technology is poised for continued success in the coming years. The company’s growth in the first 10 months of 2024 and its strategic investments in both technology and global operations demonstrate its commitment to staying at the forefront of the semiconductor industry.
