ASX

ASE Technology Holding Co., Ltd. - 2Q26 Financial Summary

Business Context and Reporting Period

This Form 6-K filing reports the unaudited consolidated financial results for ASE Technology Holding Co., Ltd. (ASEH) for the second quarter ended June 30, 2026. ASEH is a leading provider of semiconductor assembly and testing (ATM) and electronic manufacturing services (EMS). The results are prepared in accordance with Taiwan-IFRS.

Key Financial Metrics

Material Changes vs. Prior Periods

• Revenue Growth: Consolidated net revenues increased 26.7% year-over-year (YoY) and 10.0% sequentially. ATM revenues grew 36.3% YoY, while EMS revenues grew 11.9% YoY.
• Profitability Expansion: Net income attributable to shareholders surged 180% YoY and 49% sequentially. Gross margin improved by 100 basis points (bps) sequentially to 21.0%, driven primarily by the ATM segment which saw a 130 bps increase to 27.3%.
• Non-Operating Items: The quarter included a significant net gain on foreign exchange hedging activities of NT$3,637 million and a net gain on equity-method investments of NT$2,298 million, contributing to total non-operating income of NT$4,566 million.
• Cost Structure: Cost of revenues rose to NT$150,914 million. Raw material costs represented 45% of total net revenues, while labor costs were 11%.
• Balance Sheet: Total assets increased to NT$1,071,334 million. Cash and cash equivalents stood at NT$91,292 million. Total unused credit lines were NT$396,197 million.

Outlook, Risks, and Management Commentary

• Segment Performance: The ATM segment remains the primary growth engine with strong margins (Operating margin 15.7%). The EMS segment saw a slight margin compression (Gross margin down 60 bps to 8.9%) due to higher raw material costs relative to revenue.
• Customer Concentration: The top 5 customers accounted for 44% of total revenues (up from 43% in 1Q26). One customer represented over 10% of total revenues.
• Capital Allocation: Equipment CapEx was heavily weighted toward packaging (US$840 million) and testing (US$804 million) operations.
• Risks and Contingencies: The filing includes a Safe Harbor notice highlighting risks related to semiconductor cyclicality, regulatory changes, geopolitical tensions (specifically between the Republic of China and the People's Republic of China), US trade policy shifts, and foreign currency fluctuations.
• Guidance: The filing text does not provide specific numerical guidance for future quarters beyond the Safe Harbor disclaimer regarding forward-looking statements.

Investor Verification Checklist

• Non-Operating Volatility: Verify the sustainability of the NT$3.6 billion foreign exchange hedging gain and NT$2.3 billion equity-method investment gain, as these significantly boosted net income.
• EMS Margin Pressure: Monitor the EMS segment's gross margin trend, which declined sequentially despite revenue growth, indicating potential pricing or cost pass-through challenges.
• Customer Concentration: Assess the risk associated with the top 5 customers comprising 44% of revenue and the top 10 comprising 60%.
• Liquidity Position: Review the current ratio of 1.07 and the increase in net debt-to-equity to 0.47 in the context of high capital expenditure requirements.
• Geopolitical Exposure: Evaluate the impact of the stated risks regarding cross-strait relations and US trade policies on the company's global manufacturing footprint.