ASE Technology (3711-TW, ASX-US) Hints at Further Capex Increase Amid Surging AI Demand

ASE Technology Holding (3711-TW, ASX-US) COO Tien Wu indicated on June 24, 2026, that the company may further raise its capital expenditure, citing "extremely strong" AI demand. Despite 15 new plants currently under construction, Wu stated the expansion is still insufficient to meet customer orders, hinting at potential "surprises." The potential increase would mark the third upward revision this year for the semiconductor packaging and testing giant. ASE's capital expenditure for 2026 was initially set at $7 billion, then increased to $8.5 billion in April. Last year, capex reached $5.3 billion, a significant jump from its historical average of around $2 billion. The 15 active projects include six new ASE facilities, seven for SPIL, and acquired plants from companies like Innolux (3481-TW). Wu emphasized these expansions are targeting demand for 2029-2030, not just the immediate future, underscoring the long-term nature of AI-driven growth.