ASE raises capital spending by 23.5% - Taipei Times

‘STRONGER DEMAND’

: Company executives said that a lot of new investments are needed, although there are capacity bottlenecks for automation and innovation

By Lisa Wang / Staff reporter

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ASE Technology Holding Co (日月光投控) yesterday increased its capital expenditure for this year to US$10.5 billion, up 23.5 percent from its previous budget of US$8.5 billion, amid robust demand for artificial intelligence (AI) applications.The world’s largest supplier of packaging and testing services plans to allocate about 70 percent of the increased spending to capacity expansion, mainly for leading-edge advanced packaging (LEAP) technology, with LEAP revenue forecast to exceed US$3.5 billion this year, ASE said.“Obviously we are seeing a stronger demand ... from not just customers, but also our foundry partner,” ASE chief financial officer Joseph Tung (董宏思) told an earnings conference in Taipei.