On July 6, ASE Technology rose 8.67% overnight, trading at 43.01 USD/share, with turnover of 35,300 USD.
On the news front, the company announced on July 1 another round of advanced packaging price increases, with the maximum hike exceeding 20%. The adjustment covers CoWoS (Chip-on-Wafer-on-Substrate) and FoCoS (Fan-out Chip-on-Substrate) packaging services, with all major US clients included in the repricing scope. CEO Tien Wu cited surging raw material costs and rapidly escalating capital expenditure as key drivers, noting annual capex rose from approximately 2 billion USD historically to 5.3 billion USD last year and 8.5 billion USD this year, with further increases possible.
Additionally, Bank of America raised its valuation outlook for ASE, projecting the server CPU-related packaging and testing market to expand from 19 billion USD to 96 billion USD. Nearly 20 semiconductor companies globally initiated a new round of price increases in July, reinforcing improving industry sentiment. ASE is simultaneously building 15 new sites to meet surging AI-driven demand.
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