ASE Technology Holding Co., the world’s largest chip testing and packaging company, reported NT$52.9 billion ($1.7 billion) in November revenue, down 6.2% from the previous month as seasonal weakness hit demand.
The Taiwanese semiconductor service provider saw its core chip testing and packaging revenue slip 0.5% to NT$29.2 billion in November from October, while its electronic manufacturing services unit posted a steeper 12.4% monthly decline to 5.38 billion yuan ($752 million).
Chief Financial Officer Joseph Tung expects the testing and packaging division to show modest sequential growth in the fourth quarter, maintaining similar profit margins as the third quarter. However, the electronics manufacturing unit could see revenue drop around 5% with operating margins contracting by one percentage point.
ASE’s factory utilization rates averaged about 70% in the first three quarters, below company targets. While semiconductor market conditions remain soft, management anticipates a gradual recovery in 2024, with advanced packaging operations projected to contribute over 10% of revenue.
Through November, ASE’s total revenue reached NT$542.5 billion, up 2% from a year earlier.
