ASE Technology Holding Co. posted a 24% jump in third-quarter profit as the world’s largest chip packaging and testing company benefited from rising demand for semiconductor testing services.
Net income climbed to NT$9.67 billion (US$299 million) in the three months ended September, compared with NT$7.78 billion in the previous quarter, the Taiwan-based company said Thursday. Revenue rose 14% to NT$160.1 billion.
The company’s core chip assembly and testing division saw operating margins expand to 10.8% from 9.3% in the second quarter, driven by growing demand for advanced packaging services used in artificial intelligence processors. Testing revenue surged 12% quarter-on-quarter.
ASE’s electronic manufacturing services unit, which assembles consumer electronics, reported a 20% revenue increase to NT$75.4 billion. However, margins in this division remained under pressure at 3.3%.
Looking ahead, ASE expects its chip packaging and testing revenue to grow slightly in the fourth quarter while maintaining similar profit margins. The electronics manufacturing business is forecast to decline mid-single digits with lower profitability.
Capital expenditure more than doubled to US$603 million from US$239 million a year earlier as the company expands capacity to meet future demand. The majority was spent on packaging and testing equipment.
