ASE Technology Holding Co., Ltd. Reports Its Unaudited Consolidated Financial Results for the Second Quarter of 2025

Rhea-AI Summary

ASE Technology Holding (NYSE:ASX), a leading semiconductor assembly and testing services provider, reported its Q2 2025 financial results. The company achieved net revenues of NT$150,750 million, marking a 7.5% year-over-year increase and 1.8% sequential growth. However, net income decreased to NT$7,521 million from NT$7,778 million in Q2 2024.

Key operational metrics show packaging operations contributed 49% of revenues, testing 11%, and EMS operations 39%. The company maintained a strong market position with its top 5 customers accounting for 43% of total revenues. ASE's global presence spans across multiple countries, with a workforce of 100,450 employees as of June 30, 2025.

Financial highlights include a gross margin of 17.0%, operating margin of 6.8%, and equipment capital expenditures of US$992 million. The company's current ratio stands at 1.02 with a net debt to equity ratio of 0.52.

Positive

• Net revenues increased 7.5% year-over-year to NT$150,750 million
• ATM segment revenues grew 19.0% year-over-year to NT$92,565 million
• Gross margin improved to 17.0% from 16.8% in previous quarter
• Equipment capital expenditure increased significantly with US$992 million investment
• Employee headcount grew to 100,450, indicating business expansion

Negative

• Net income declined to NT$7,521 million from NT$7,778 million year-over-year
• EMS segment revenues decreased 6.6% year-over-year
• Net foreign exchange loss impact of NT$12,098 million on valuation
• ATM segment gross margin decreased by 0.7 percentage points to 21.9%

Insights

Financial Analyst

ASE reported mixed Q2 results with revenue growth offset by profit decline amid segment performance divergence and margin pressures.

ASE Technology Holding Co. reported Q2 2025 revenue of NT$150,750 million, showing healthy growth of 7.5% year-over-year and 1.8% sequentially. However, the company's net income declined to NT$7,521 million, down from NT$7,778 million in Q2 2024 and NT$7,554 million in Q1 2025.

The results reveal a tale of two segments: The ATM (assembly, testing, and material) business demonstrated robust growth with revenues increasing by 19.0% year-over-year to NT$92,565 million. This strength was driven particularly by the computing segment, which grew from 19% to 24% of ATM revenues year-over-year, likely reflecting increased AI-related demand. Meanwhile, the EMS (electronic manufacturing services) segment showed weakness, with revenues declining by 6.6% year-over-year to NT$58,770 million.

ASE's profitability metrics showed slight pressure, with overall gross margin at 17.0%, improving marginally from 16.8% in Q1 but ATM gross margin declined to 21.9% from 22.6% sequentially. The operating margin remained relatively stable at 6.8% compared to 6.5% in Q1.

The company continues to invest heavily in capacity expansion, with equipment capex reaching US$992 million in Q2, primarily focused on packaging operations (US$690 million) and testing (US$251 million). This indicates management's confidence in future demand, particularly in advanced packaging technologies where bumping, flip chip, WLP & SiP represented 47% of ATM revenues, up from 44% a year ago.

Customer concentration remains significant with the top five customers accounting for 43% of total revenues and one customer representing more than 10%. The company added approximately 4,000 employees during the quarter, bringing the total workforce to 100,450, suggesting preparation for anticipated growth.

ASE's foreign exchange impact was notable, with a net foreign exchange gain of NT$11,885 million offset by a net loss on valuation of financial assets and liabilities of NT$12,098 million, resulting in minimal net impact on earnings.

TAIPEI, July 31, 2025 /PRNewswire/ -- ASE Technology Holding Co., Ltd. (TWSE: 3711, NYSE: ASX) ("We", "ASEH", or the "Company"), the leading provider of semiconductor assembly and testing services ("ATM") and the provider of electronic manufacturing services ("EMS"), today reported its unaudited^[1] net revenues of NT$150,750 million for 2Q25, up by 7.5% year-over-year and up by 1.8% sequentially. Net income attributable to shareholders of the parent for the quarter totaled NT$7,521 million, down from NT$7,778 million in 2Q24 and down from NT$7,554 million in 1Q25. Basic earnings per share for the quarter were NT$1.74 (or US$0.111 per ADS), compared to NT$1.80 for 2Q24 and NT$1.75 for 1Q25. Diluted earnings per share for the quarter were NT$1.70 (or US$0.109 per ADS), compared to NT$1.75 for 2Q24 and NT$1.64 for 1Q25.

RESULTS OF OPERATIONS

2Q25 Results Highlights – Consolidated

• Net revenues from packaging operations, testing operations, EMS operations, and others represented approximately 49%, 11%, 39%, and 1% of the total net revenues for the quarter, respectively.
• Cost of revenues was NT$125,063 million for the quarter, up from NT$123,260 million in 1Q25.
  - Raw material cost totaled NT$71,321 million for the quarter, representing 47% of the total net revenues.
  - Labor cost totaled NT$17,995 million for the quarter, representing 12% of the total net revenues.
  - Depreciation, amortization and rental expenses totaled NT$15,183 million for the quarter.
• Gross margin increased by 0.2 percentage points to 17.0% in 2Q25 from 16.8% in 1Q25.
• Operating margin was 6.8% in 2Q25, compared to 6.5% in 1Q25.
• In terms of non-operating items:
  - Net interest expense was NT$1,203 million.
  - Net foreign exchange gain was NT$11,885 million, primarily attributable to the depreciation of the U.S. dollar against the New Taiwan dollar.
  - Net loss on valuation of financial assets and liabilities was NT$12,098 million.
  - Net gain on equity-method investments was NT$223 million.
  - Other net non-operating income was NT$255 million, primarily attributable to miscellaneous income.
  Total non-operating expenses for the quarter were NT$938 million.
• Income before tax was NT$9,255 million in 2Q25, compared to NT$9,810 million in 1Q25. We recorded income tax expenses of NT$1,576 million for the quarter, compared to NT$2,022 million in 1Q25.
• Net income attributable to shareholders of the parent was NT$7,521 million in 2Q25, compared to NT$7,778 million in 2Q24 and NT$7,554 million in 1Q25.
• Our total number of shares outstanding at the end of the quarter was 4,422,175,232, including treasury stock owned by our subsidiaries in 2Q25. Our 2Q25 basic earnings per share of NT$1.74 (or US$0.111 per ADS) were based on 4,332,918,727 weighted average number of shares outstanding in 2Q25. Our 2Q25 diluted earnings per share of NT$1.70 (or US$0.109 per ADS) were based on 4,395,186,708 weighted average number of shares outstanding in 2Q25.

2Q25 Results Highlights – ATM

• Net revenues were NT$92,565 million for the quarter, up by 19.0% year-over-year and up by 6.8% sequentially.
• Cost of revenues was NT$72,317 million for the quarter, up by 19.3% year-over-year and up by 7.8% sequentially.
  - Raw material cost totaled NT$26,338 million for the quarter, representing 29% of the total net revenues.
  - Labor cost totaled NT$14,606 million for the quarter, representing 16% of the total net revenues.
  - Depreciation, amortization and rental expenses totaled NT$13,822 million for the quarter.
• Gross margin decreased by 0.7 percentage points to 21.9% in 2Q25 from 22.6% in 1Q25.
• Operating margin was 9.5% in 2Q25, compared to 9.6% in 1Q25.

2Q25 Results Highlights – EMS

• Net revenues were NT$58,770 million, down by 6.6% year-over-year and down by 5.7% sequentially.
• Cost of revenues for the quarter was NT$53,221 million, down by 6.4% year-over-year and down by 6.2% sequentially.
  - Raw material cost totaled NT$45,277 million for the quarter, representing 77% of the total net revenues.
  - Labor cost totaled NT$3,283 million for the quarter, representing 6% of the total net revenues.
  - Depreciation, amortization and rental expenses totaled NT$1,110 million for the quarter.
• Gross margin increased by 0.5 percentage points to 9.4% in 2Q25 from 8.9% in 1Q25.
• Operating margin was 2.6% in both 2Q25 and 1Q25.

LIQUIDITY AND CAPITAL RESOURCES

• Equipment capital expenditures in 2Q25 totaled US$992 million, of which US$690 million was used in packaging operations, US$251 million in testing operations, US$49 million in EMS operations and US$2 million in interconnect materials operations and others.
• Total unused credit lines amounted to NT$355,299 million as of June 30, 2025.
• Current ratio was 1.02 and net debt to equity ratio was 0.52 as of June 30, 2025.
• Total number of employees was 100,450 as of June 30, 2025, compared to 96,436 as of March 31, 2025.

Business Review

Customers

ATM Basis

• Our five largest customers together accounted for approximately 43% of our total net revenues in 2Q25, compared to 44% in 1Q25. One customer accounted for more than 10% of our total net revenues in 2Q25.
• Our top 10 customers contributed 60% of our total net revenues in 2Q25, compared to 61% in 1Q25.
• Our customers that are integrated device manufacturers or IDMs accounted for 35% of our total net revenues in 2Q25, compared to 34% in 1Q25.

EMS Basis

• Our five largest customers together accounted for approximately 65% of our total net revenues in 2Q25, compared to 68% in 1Q25. One customer accounted for more than 10% of our total net revenues in 2Q25.
• Our top 10 customers contributed 71% of our total net revenues in 2Q25, compared to 74% in 1Q25.

About ASE Technology Holding Co., Ltd.

ASEH is the leading provider of semiconductor manufacturing services in assembly and test. The Company develops and offers complete turnkey solutions covering front-end engineering test, wafer probing and final test, as well as packaging, materials and electronic manufacturing services through USI with superior technologies, breakthrough innovations, and advanced development programs. With advanced technological capabilities and a global presence spanning Taiwan, China, South Korea, Japan, Singapore, Malaysia, Philippines, Vietnam, Mexico, and Tunisia as well as the United States and Europe, ASEH has established a reputation for reliable, high quality products and services.

For more information, please visit our website at https://www.aseglobal.com.

Safe Harbor Notice

This press release contains "forward-looking statements" within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended.  These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995.  Although these forward-looking statements, which may include statements regarding our future results of operations, financial condition or business prospects, are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on these forward-looking statements, which apply only as of the date of this press release.  The words "anticipate," "believe," "estimate," "expect," "intend," "plan" and similar expressions, as they relate to us, are intended to identify these forward-looking statements in this press release. These forward-looking statements are necessarily estimates reflecting the best judgment of our senior management and our actual results of operations, financial condition or business prospects may differ materially from those expressed or implied by the forward-looking statements for reasons including, among others, risks associated with cyclicality and market conditions in the semiconductor or electronic industry; changes in our regulatory environment, including our ability to comply with new or stricter environmental regulations and to resolve environmental liabilities; demand for the outsourced semiconductor packaging, testing and electronic manufacturing services we offer and for such outsourced services generally; the highly competitive semiconductor or manufacturing industry we are involved in; our ability to introduce new technologies in order to remain competitive; international business activities; our business strategy; our future expansion plans and capital expenditures; the strained relationship between the Republic of China and the People's Republic of China; general economic and political conditions; the recent shift in United States trade policies; possible disruptions in commercial activities caused by natural or human-induced disasters; fluctuations in foreign currency exchange rates; and other factors. For a discussion of these risks and other factors, please see the documents we file from time to time with the Securities and Exchange Commission, including the 2024 Annual Report on Form 20-F filed on March 27, 2025.

Supplemental Financial Information
(Unaudited)

Consolidated Operations

	2Q25	1Q25	2Q24
EBITDA[2] (NT$ million)	27,426	27,628	26,127

ATM Operations

	2Q25	1Q25	2Q24
Net Revenues (NT$ million)	92,565	88,668	77,813
Revenues by Application
Communication	46 %	48 %	49 %
Computing	24 %	22 %	19 %
Automotive, Consumer & Others	30 %	30 %	32 %
Revenues by Type
Bumping, Flip Chip, WLP & SiP	47 %	46 %	44 %
Wirebonding	28 %	28 %	31 %
Others	5 %	6 %	7 %
Testing	18 %	18 %	16 %
Material	2 %	2 %	2 %
Capacity & EBITDA
Equipment CapEx (US$ million)	942	869	374
EBITDA[2] (NT$ million)	24,295	24,146	22,205
Number of Wirebonders	25,156	25,222	25,154
Number of Testers	6,797	6,686	5,676

EMS Operations

	2Q25	1Q25	2Q24
Net Revenues (NT$ million)	58,770	62,295	62,907
Revenues by Application
Communication	33 %	33 %	33 %
Computing	11 %	11 %	11 %
Consumer	30 %	31 %	29 %
Industrial	14 %	13 %	13 %
Automotive	10 %	10 %	11 %
Others	2 %	2 %	3 %
Capacity
Equipment CapEx (US$ million)	49	23	31

ASE Technology Holding Co., Ltd.
Summary of Consolidated Statement of Income Data
(In NT$ million, except per share data)
(Unaudited)

	For the three months ended						For the six months ended
	Jun. 30 2025		Mar. 31 2025		Jun. 30 2024 (Retrospectively Adjusted)		Jun. 30 2025		Jun. 30 2024 (Retrospectively  Adjusted)
Net revenues
Packaging	73,659		68,411		62,834		142,070		122,292
Testing	16,612		16,004		12,623		32,616		24,725
EMS	58,374		61,860		62,853		120,234		122,179
Others	2,105		1,878		1,928		3,983		3,845
Total net revenues	150,750		148,153		140,238		298,903		273,041
Cost of revenues	(125,063)		(123,260)		(117,184)		(248,323)		(229,166)
Gross profit	25,687		24,893		23,054		50,580		43,875
Operating expenses
Research and development	(8,004)		(7,579)		(7,106)		(15,583)		(13,715)
Selling, general and administrative	(7,490)		(7,643)		(6,939)		(15,133)		(13,674)
Total operating expenses	(15,494)		(15,222)		(14,045)		(30,716)		(27,389)
Operating income	10,193		9,671		9,009		19,864		16,486
Net non-operating income and expenses
Interest expense - net	(1,203)		(1,256)		(1,158)		(2,459)		(2,265)
Foreign exchange gain (loss) - net	11,885		(1,675)		(1,420)		10,210		(4,639)
Gain (Loss) on valuation of financial assets   and liabilities - net	(12,098)		2,873		2,664		(9,225)		6,762
Gain on equity-method investments - net	223		40		459		263		516
Others - net	255		157		551		412		1,057
Total non-operating income and expenses	(938)		139		1,096		(799)		1,431
Income before tax	9,255		9,810		10,105		19,065		17,917
Income tax expense	(1,576)		(2,022)		(1,950)		(3,598)		(3,843)
Income from operations and before non-   controlling interests	7,679		7,788		8,155		15,467		14,074
Non-controlling interests	(158)		(234)		(377)		(392)		(636)
Net income attributable to shareholders of   the parent	7,521		7,554		7,778		15,075		13,438
Per share data:
Earnings per share
– Basic	NT$1.74		NT$1.75		NT$1.80		NT$3.48		NT$3.11
– Diluted	NT$1.70		NT$1.64		NT$1.75		NT$3.34		NT$3.01
Earnings per equivalent ADS
– Basic	US$0.111		US$0.106		US$0.112		US$0.218		US$0.196
– Diluted	US$0.109		US$0.100		US$0.109		US$0.209		US$0.190
Number of weighted average shares used in   diluted EPS calculation ( in thousand shares)	4,395,187		4,410,238		4,383,325		4,406,107		4,376,301
FX (NTD/USD)	31.18		32.79		32.23		31.99		31.77

ASE Technology Holding Co., Ltd.
Summary of ATM Statement of Income Data
(In NT$ million) 
(Unaudited)

	For the three months ended						For the six months ended
	Jun. 30 2025		Mar. 31 2025		Jun. 30 2024		Jun. 30 2025		Jun. 30 2024
Net revenues:
Packaging	74,440		69,360		63,838		143,800		124,226
Testing	16,612		16,004		12,623		32,616		24,725
Direct Material	1,431		1,219		1,264		2,650		2,602
Others	82		85		88		167		168
Total net revenues	92,565		86,668		77,813		179,233		151,721
Cost of revenues	(72,317)		(67,057)		(60,612)		(139,374)		(118,963)
Gross profit	20,248		19,611		17,201		39,859		32,758
Operating expenses:
Research and development	(6,320)		(6,043)		(5,483)		(12,363)		(10,618)
Selling, general and administrative	(5,111)		(5,233)		(4,464)		(10,344)		(8,809)
Total operating expenses	(11,431)		(11,276)		(9,947)		(22,707)		(19,427)
Operating income	8,817		8,335		7,254		17,152		13,331

ASE Technology Holding Co., Ltd.
Summary of EMS Statement of Income Data
(In NT$ million) 
(Unaudited)

	For the three months ended						For the six months ended
	Jun. 30 2025		Mar. 31 2025		Jun. 30 2024 (Retrospectively Adjusted)		Jun. 30 2025		Jun. 30 2024 (Retrospectively Adjusted)
Net revenues	58,770		62,295		62,907		121,065		122,272
Cost of revenues	(53,221)		(56,767)		(56,882)		(109,988)		(110,795)
Gross profit	5,549		5,528		6,025		11,077		11,477
Operating expenses
Research and development	(1,723)		(1,580)		(1,668)		(3,303)		(3,201)
Selling, general and administrative	(2,313)		(2,340)		(2,415)		(4,653)		(4,724)
Total operating expenses	(4,036)		(3,920)		(4,083)		(7,956)		(7,925)
Operating income	1,513		1,608		1,942		3,121		3,552

ASE Technology Holding Co., Ltd.
Summary of Consolidated Balance Sheet Data
(In NT$ million)
(Unaudited)

			As of Jun. 30, 2025			As of Mar. 31, 2025
Current assets
Cash and cash equivalents			72,785			77,100
Financial assets – current			4,118			16,435
Trade receivables			103,101			109,717
Inventories			57,058			59,858
Others			16,933			15,542
Total current assets			253,995			278,652
Financial assets - non-current & investments - equity -method			38,409			41,428
Property, plant and equipment			364,849			342,056
Right-of-use assets			11,721			11,754
Intangible assets			65,610			66,955
Others			30,591			33,332
Total assets			765,175			774,177
Current liabilities
Short-term borrowings[3]			40,369			55,485
Long-term debts - current portion			12,930			20,774
Trade payables			70,518			74,382
Others			125,153			117,101
Total current liabilities			248,970			267,742
Bonds payable			16,668			21,066
Long-term borrowings[3]			162,326			126,708
Other liabilities			22,276			23,638
Total liabilities			450,240			439,154
Equity attributable to shareholders of the parent			293,770			311,522
Non-controlling interests			21,165			23,501
Total liabilities & shareholders' equity			765,175			774,177
Current ratio			1.02			1.04
Net debt to equity ratio			0.52			0.41

ASE Technology Holding Co., Ltd.
Summary of Consolidated Statement of Cash Flow Data
(In NT$ million)
(Unaudited)

		For the three months ended						For the six months ended
		Jun. 30 2025		Mar. 31 2025		Jun. 30 2024		Jun. 30 2025		Jun. 30 2024
						(Retrospectively Adjusted)				(Retrospectively Adjusted)
Cash Flows from Operating Activities:
Profit before income tax		9,255		9,810		10,105		19,065		17,917
Depreciation & amortization		16,531		16,092		14,813		32,623		29,412
Other operating activities items		11,059		(5,929)		(8,132)		5,130		(13,849)
Net cash generated from operating   activities		36,845		19,973		16,786		56,818		33,480
Cash Flows from Investing Activities:
Net payments for property, plant   and equipment		(43,104)		(36,349)		(14,786)		(79,453)		(27,299)
Other investment activities items		(469)		(1,212)		304		(1,681)		(2,690)
Net cash used in investing activities		(43,573)		(37,561)		(14,482)		(81,134)		(29,989)
Cash Flows from Financing Activities:
Total net proceeds from   (repayment of) borrowings and   bonds		22,159		16,149		(12,330)		38,308		(12,470)
Other financing activities items		(662)		262		(1,093)		(400)		(1,126)
Net cash generated from (used in)   financing activities		21,497		16,411		(13,423)		37,908		(13,596)
Foreign currency exchange effect		(19,084)		1,784		2,187		(17,300)		8,994
Net increase (decrease) in cash and   cash equivalents		(4,315)		607		(8,932)		(3,708)		(1,111)
Cash and cash equivalents at the   beginning of period		77,100		76,493		75,105		76,493		67,284
Cash and cash equivalents at the end   of period		72,785		77,100		66,173		72,785		66,173

 

[1] All financial information presented in this press release is unaudited, consolidated and prepared in accordance with Taiwan-IFRS (International Financial Reporting Standards as endorsed for use in the R.O.C.).  Such financial information is generated internally by us and has not been subjected to the same review and scrutiny, including internal auditing procedures and audit by our independent auditors, to which we subject our year-end audited consolidated financial statements, and may vary materially from the year-end audited consolidated financial information for the same period.  Any evaluation of the financial information presented in this press release should also take into account our published year-end audited consolidated financial statements and the notes to those statements.  In addition, the financial information presented is not necessarily indicative of our results of operations for any future period.

[2] EBITDA stands for net income or loss before interest, taxes, depreciation, amortization, impairment and investment gain or loss as well as other items.

[3] Borrowings include bank loans and bills payable.

Investor Relations Contact
ir@aseglobal.com
Tel: +886.2.6636.5678
https://www.aseglobal.com

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SOURCE ASE Technology Holding Co., Ltd.

FAQ

What were ASE Technology's (ASX) Q2 2025 earnings results?

ASE reported net revenues of NT$150,750 million (up 7.5% YoY) and net income of NT$7,521 million with diluted EPS of NT$1.70 (US$0.109 per ADS).

How did ASE's different business segments perform in Q2 2025?

Packaging operations contributed 49% of revenues, testing operations 11%, and EMS operations 39%. ATM segment grew 19.0% YoY while EMS declined 6.6% YoY.

What was ASE's capital expenditure in Q2 2025?

Total equipment capital expenditure was US$992 million, with US$690 million for packaging, US$251 million for testing, and US$49 million for EMS operations.

What is ASE's customer concentration in Q2 2025?

The top 5 customers accounted for 43% of total revenues, while top 10 customers contributed 60% of total revenues.

What are ASE's key financial ratios as of June 2025?

ASE maintained a current ratio of 1.02 and a net debt to equity ratio of 0.52, with total unused credit lines of NT$355,299 million.