ASE Technology Holding has increased its 2026 capital expenditure forecast by $2 billion to approximately $10.5 billion as strong AI demand drives expansion across its chip packaging and testing operations.
The Taiwan based company previously expected to spend $8.5 billion this year. Half of the additional investment will fund new facilities, while the remaining $1 billion will be directed toward equipment.
ASE is building 13 new sites and repurposing eight existing factories to expand production capacity.
The company said revenue from its leading edge advanced packaging business is tracking ahead of its previous 2026 guidance of $3.5 billion. Chief Financial Officer Joseph Tung said ASE aims to double revenue from the business in 2027.
Demand is being driven by AI systems that require increasingly complex packaging, testing, storage, connectivity, and power components.
