ASE COO Signals Inevitable Price Hikes Amid Surging CAPEX (3711-TW)

ASE Technology Holding (3711-TW) (ASX-US) COO Tien Wu signaled potential price increases following the company's shareholder meeting on June 24, 2026. Wu stated that reflecting rising raw material costs is the first and "inevitable" layer of price adjustments, citing it as a necessary trend. Wu outlined three tiers for price adjustments: reflecting raw material costs, increased investment, and market supply-demand dynamics. ASE's capital expenditure has surged from an annual $2 billion to $5.3 billion last year, and is projected to reach $8.5 billion this year, with further increases possible. This expanded investment necessitates cost integration into pricing. Wu emphasized a long-term strategy, balancing current strong AI data center demand with future investments in areas like physical AI, AI consumer electronics, and robotics. He stressed the importance of maintaining customer trust and long-term partnerships over short-term gains.