Chip Assembler ASE Sees Advanced Packaging Sales Doubling

By Alan Patterson, EE Times | February 16, 2026

ASE, the world’s largest chip assembler, expects its advanced packaging sales to double this year to $3.2 billion on strong demand from AI chipmakers, such as Nvidia. ASE said it will increase its 2026 capital expenditure by an undisclosed amount from the $5.5 billion it spent last year.

The Taiwanese company is buying cleanrooms and building its own to expand into advanced packaging. Top foundry TSMC is likely to transfer more of the business to ASE as both companies prepare to boost production for AI customers like Nvidia, AMD, and Amazon, according to JPMorgan managing director Gokul Hariharan.

“In 2026, we believe that the primary driver for growth is likely to be on-substrate outsourcing from TSMC for Nvidia GPUs, with a meaningful step up likely in second-half 2026 as [Nvidia] Rubin GPUs start ramping,” Hariharan said in a Feb. 6 report obtained by EE Times. “Full-process packaging should start in second-half 2026, in our view, with AMD Venice CPUs being the first products, and could reach $300 million to $400 million in revenues in 2026, with further room for growth in 2027, as multiple non-GPU products from AMD are moving to ASE’s 2.5D process. In 2027, we also expect to see some [Nvidia] Vera CPU outsourcing coming to ASE, while early discussions indicate potential share gains in [Amazon] Trainium3 ASICs.”

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