ASE Technology's stock surged 12.04% during intraday trading on Tuesday, marking a significant upward movement for the semiconductor packaging and testing leader.

The sharp rise is primarily attributed to Advanced Micro Devices Inc.'s announcement of an investment exceeding $10 billion in Taiwan's semiconductor and artificial intelligence ecosystem. ASE Technology, as a core packaging and testing partner, is positioned to directly benefit from this massive investment through expected capacity expansion and increased orders. The collaboration includes developing next-generation wafer-based 2.5D bridge interconnect technology to support AMD's upcoming Venice CPU and Helios AI platform deployments.

Additionally, ASE's subsidiary announced the launch of an automated 310mm panel-level packaging production line, which is expected to begin production in the first half of next year. The rally also represents a technical rebound from notably oversold conditions, following a prior decline of over 15% due to large-scale insider selling and broader sector weakness.