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

Rhea-AI Summary

ASE Technology Holding reported Q1 2025 financial results with net revenues of NT$148,153 million, showing an 11.6% year-over-year increase but an 8.7% sequential decline. Net income reached NT$7,554 million, up from NT$5,660 million in Q1 2024.

The company's operations are divided into key segments: packaging (46%), testing (11%), and EMS (42%) of total revenues. Gross margin improved to 16.8%, while operating margin was 6.5%. Notable metrics include:

• Basic earnings per share: NT$1.75 (US$0.106 per ADS)
• Equipment capital expenditures: US$892 million
• Total employees: 96,436

In the ATM segment, revenues reached NT$86,668 million with a 17.3% year-over-year growth. The EMS segment generated NT$62,295 million, showing a 4.9% year-over-year increase. The company maintains a strong presence across Taiwan, China, South Korea, and other global locations.

Positive

• Net revenues up 11.6% YoY to NT$148,153M in Q1 2025
• Net income increased 33.5% YoY to NT$7,554M from NT$5,660M in Q1 2024
• ATM segment revenues grew 17.3% YoY to NT$86,668M
• EMS segment revenues increased 4.9% YoY to NT$62,295M
• Gross margin improved to 16.8% from 16.4% in previous quarter
• Strong customer concentration with top 5 customers accounting for 44% of revenues
• Employee headcount increased to 96,436, showing business expansion

Negative

• Sequential revenue decline of 8.7% from Q4 2024
• Net income decreased 18.9% QoQ from NT$9,312M in Q4 2024
• Operating margin declined to 6.5% from 6.9% in Q4 2024
• Net foreign exchange loss of NT$1,675M due to USD appreciation
• ATM segment operating margin decreased to 9.6% from 10.7% in Q4 2024
• EMS segment revenues dropped 16.8% QoQ
• High customer concentration risk with two customers each accounting for >10% of revenues

Insights

Financial Analyst

ASE reports strong YoY growth with 11.6% revenue increase and 33.5% profit jump despite normal seasonal Q1 weakness.

ASE Technology Holding's Q1 2025 financials demonstrate robust year-over-year growth despite typical seasonal patterns. Net revenues reached NT$148,153 million, surging 11.6% year-over-year while net income jumped even more impressively by 33.5% to NT$7,554 million.

While sequential comparisons show expected Q1 softness (revenue down 8.7% from Q4), this follows typical industry seasonality. More telling is that gross margin actually improved to 16.8% from 16.4% sequentially, indicating effective cost management despite lower volumes.

Segment performance reveals divergent trends: the ATM division (semiconductor packaging, testing) delivered 17.3% year-over-year growth, significantly outpacing the EMS division's more modest 4.9% increase. The sequential decline in EMS (-16.8%) was much steeper than ATM's minor -1.9% dip, suggesting stronger resilience in semiconductor services.

Capital expenditures remained robust at US$892 million, with substantial investments in testing (US$472 million) and packaging operations (US$395 million). The company maintains financial flexibility with NT$358,413 million in unused credit lines and a manageable net debt-to-equity ratio of 0.41, positioning it well for future growth initiatives.

Semiconductor Industry Specialist

ASE's Q1 reveals shifting industry dynamics with advanced packaging growing to 46% of ATM revenues and computing applications gaining share.

ASE's Q1 results illuminate critical shifts in semiconductor manufacturing dynamics. The company's 17.3% year-over-year growth in ATM operations significantly outpaced the overall company growth rate, underscoring the expanding demand for advanced semiconductor manufacturing services.

The revenue composition within ATM reveals important industry evolution: advanced packaging technologies (Bumping, Flip Chip, WLP & SiP) now represent 46% of segment revenues, up from 43% year-over-year, reflecting the industry's transition toward more sophisticated packaging solutions. Meanwhile, testing services contributed 18% of ATM revenues, maintaining their critical role.

Application segmentation shows notable shifts. Communications applications declined from 53% to 48% of ATM revenues sequentially, while computing applications gained significant share, jumping from 17% to 22%. This substantial rebalancing suggests changing demand patterns across semiconductor end markets.

Capital allocation tells another compelling story. ASE added 386 testers while slightly reducing wirebonders (from 25,328 to 25,222), indicating a strategic pivot toward more advanced testing capabilities. This aligns with the US$472 million capital expenditure for testing operations, which exceeded the US$395 million spent on packaging operations, highlighting where ASE sees future value creation.

TAIPEI, April 30, 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 net revenues^[1] of NT$148,153 million for 1Q25, up by 11.6% year-over-year and down by 8.7% sequentially. Net income attributable to shareholders of the parent for the quarter totaled NT$7,554 million, up from NT$5,660 million in 1Q24 and down from NT$9,312 million in 4Q24.  Basic earnings per share for the quarter were NT$1.75 (or US$0.106 per ADS), compared to NT$1.31 for 1Q24 and NT$2.15 for 4Q24.  Diluted earnings per share for the quarter were NT$1.64 (or US$0.100 per ADS), compared to NT$1.27 for 1Q24 and NT$2.07 for 4Q24.

We completed the purchase price allocation calculation in relation to Hirschmann acquisition as of September 30, 2024, and have retrospectively adjusted the consolidated financial results for 1Q24.

RESULTS OF OPERATIONS

1Q25 Results Highlights – Consolidated

• Net revenues from packaging operations, testing operations, EMS operations, and others represented approximately 46%, 11%, 42%, and 1% of the total net revenues for the quarter, respectively.
• Cost of revenues was NT$123,260 million for the quarter, down from NT$135,633 million in 4Q24.
  - Raw material cost totaled NT$72,343 million for the quarter, representing 49% of the total net revenues.
  - Labor cost totaled NT$16,997 million for the quarter, representing 11% of the total net revenues.
  - Depreciation, amortization and rental expenses totaled NT$14,672 million for the quarter.
• Gross margin increased by 0.4 percentage points to 16.8% in 1Q25 from 16.4% in 4Q24.
• Operating margin was 6.5% in 1Q25, compared to 6.9% in 4Q24.
• In terms of non-operating items:
  - Net interest expense was NT$1,256 million.
  - Net foreign exchange loss was NT$1,675 million, primarily attributable to the appreciation of the U.S. dollar against the New Taiwan dollar.
  - Net gain on valuation of financial assets and liabilities was NT$2,873 million.
  - Net gain on equity-method investments was NT$40 million.
  - Other net non-operating income was NT$157 million, primarily attributable to miscellaneous income.
  Total non-operating income and expenses for the quarter was NT$139 million.
• Income before tax was NT$9,810 million in 1Q25, compared to NT$11,441 million in 4Q24. We recorded income tax expenses of NT$2,022 million for the quarter, compared to NT$1,862 million in 4Q24.
• Net income attributable to shareholders of the parent was NT$7,554 million in 1Q25, compared to NT$5,660 million in 1Q24 and NT$9,312 million in 4Q24.
• Our total number of shares outstanding at the end of the quarter was 4,418,995,632, including treasury stock owned by our subsidiaries in 1Q25. Our 1Q25 basic earnings per share of NT$1.75 (or US$0.106 per ADS) were based on 4,328,341,956 weighted average numbers of shares outstanding in 1Q25.  Our 1Q25 diluted earnings per share of NT$1.64 (or US$0.100 per ADS) were based on 4,410,238,275 weighted average number of shares outstanding in 1Q25.

1Q25 Results Highlights – ATM

• Net revenues were NT$86,668 million for the quarter, up by 17.3% year-over-year and down by 1.9% sequentially.
• Cost of revenues was NT$67,057 million for the quarter, up by 14.9% year-over-year and down by 1.0% sequentially.
  - Raw material cost totaled NT$23,566 million for the quarter, representing 27% of the total net revenues.
  - Labor cost totaled NT$14,050 million for the quarter, representing 16% of the total net revenues.
  - Depreciation, amortization and rental expenses totaled NT$13,238 million for the quarter.
• Gross margin decreased by 0.7 percentage points to 22.6% in 1Q25 from 23.3% in 4Q24.
• Operating margin was 9.6% in 1Q25, compared to 10.7% in 4Q24.

1Q25 Results Highlights – EMS

• Net revenues were NT$62,295 million, up by 4.9% year-over-year and down by 16.8% sequentially.
• Cost of revenues for the quarter was NT$56,767 million, up by 5.3% year-over-year and down by 17.4% sequentially.
  - Raw material cost totaled NT$49,087 million for the quarter, representing 79% of the total net revenues.
  - Labor cost totaled NT$2,845 million for the quarter, representing 5% of the total net revenues.
  - Depreciation, amortization and rental expenses totaled NT$1,169 million for the quarter.
• Gross margin increased by 0.6 percentage points to 8.9% in 1Q25 from 8.3% in 4Q24.
• Operating margin was 2.6% in 1Q25, compared to 2.7% in 4Q24.

LIQUIDITY AND CAPITAL RESOURCES

• Equipment capital expenditures in 1Q25 totaled US$892 million, of which US$395 million was used in packaging operations, US$472 million in testing operations, US$23 million in EMS operations and US$2 million in interconnect materials operations and others.
• Total unused credit lines amounted to NT$358,413 million as of March 31, 2025.
• Current ratio was 1.04 and net debt to equity ratio was 0.41 as of March 31, 2025.
• Total number of employees was 96,436 as of March 31, 2025, compared to 95,492 as of December 31, 2024.

BUSINESS REVIEW

Customers

ATM BASIS

• Our five largest customers together accounted for approximately 44% of our total net revenues in both 1Q25 and 4Q24.  Two customers each accounted for more than 10% of our total net revenues in 1Q25 individually.
• Our top 10 customers contributed 61% of our total net revenues in 1Q25, compared to 60% in 4Q24.
• Our customers that are integrated device manufacturers or IDMs accounted for 34% of our total net revenues in 1Q25, compared to 32% in 4Q24. 

EMS BASIS

• Our five largest customers together accounted for approximately 68% of our total net revenues in 1Q25, compared to 72% in 4Q24. One customer accounted for more than 10% of our total net revenues in 1Q25.
• Our top 10 customers contributed 74% of our total net revenues in 1Q25, compared to 78% in 4Q24.

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

	1Q25	4Q24	1Q24
EBITDA[2] (NT$ million)	27,628	28,797	23,939

 

ATM Operations

	1Q25	4Q24	1Q24
Net Revenues (NT$ million)	86,668	88,363	73,908
Revenues by Application
Communication	48 %	53 %	52 %
Computing	22 %	17 %	18 %
Automotive, Consumer & Others	30 %	30 %	30 %
Revenues by Type
Bumping, Flip Chip, WLP & SiP	46 %	47 %	43 %
Wirebonding	28 %	27 %	30 %
Others	6 %	7 %	9 %
Testing	18 %	18 %	16 %
Material	2 %	1 %	2 %
Capacity & EBITDA
Equipment CapEx (US$ million)	869	616	206
EBITDA[2] (NT$ million)	24,146	24,845	20,422
Number of Wirebonders	25,222	25,328	25,406
Number of Testers	6,686	6,300	5,611

 

EMS Operations

	1Q25	4Q24	1Q24
Net Revenues (NT$ million)	62,295	74,895	59,365
Revenues by Application
Communication	33 %	37 %	34 %
Computing	11 %	9 %	12 %
Consumer	31 %	33 %	27 %
Industrial	13 %	11 %	12 %
Automotive	10 %	8 %	12 %
Others	2 %	2 %	3 %
Capacity
Equipment CapEx (US$ million)	23	24	21

 

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
	Mar. 31 2025		Dec. 31 2024		Mar. 31 2024 (Retrospectively Adjusted)
Net revenues
Packaging	68,411		70,285		59,458
Testing	16,004		15,713		12,102
EMS	61,860		74,243		59,326
Others	1,878		2,023		1,917
Total net revenues	148,153		162,264		132,803
Cost of revenues	(123,260)		(135,633)		(111,982)
Gross profit	24,893		26,631		20,821
Operating expenses
Research and development	(7,579)		(7,676)		(6,609)
Selling, general and administrative	(7,643)		(7,744)		(6,735)
Total operating expenses	(15,222)		(15,420)		(13,344)
Operating income	9,671		11,211		7,477
Net non-operating income and expenses
Interest expense - net	(1,256)		(1,308)		(1,107)
Foreign exchange loss - net	(1,675)		(2,787)		(3,219)
Gain on valuation of financial assets and liabilities - net	2,873		4,017		4,098
Gain (loss) on equity-method investments - net	40		(133)		57
Others - net	157		441		506
Total non-operating income and expenses	139		230		335
Income before tax	9,810		11,441		7,812
Income tax expense	(2,022)		(1,862)		(1,893)
Income from operations and before non-controlling interests	7,788		9,579		5,919
Non-controlling interests	(234)		(267)		(259)
Net income attributable to shareholders of the parent	7,554		9,312		5,660
Per share data:
Earnings per share
– Basic	NT$1.75		NT$2.15		NT$1.31
– Diluted	NT$1.64		NT$2.07		NT$1.27
Earnings per equivalent ADS
– Basic	US$0.106		US$0.134		US$0.084
– Diluted	US$0.100		US$0.129		US$0.081
Number of weighted average shares used in diluted EPS calculation  (in thousand shares)	4,410,238		4,399,409		4,368,340
FX (NTD/USD)	32.79		32.16		31.30

 

 

 

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

 

	For the three months ended
	Mar. 31 2025		Dec. 31 2024		Mar. 31 2024
Net revenues:
Packaging	69,360		71,342		60,388
Testing	16,004		15,713		12,102
Direct Material	1,219		1,233		1,338
Others	85		75		80
Total net revenues	86,668		88,363		73,908
Cost of revenues	(67,057)		(67,754)		(58,351)
Gross profit	19,611		20,609		15,557
Operating expenses:
Research and development	(6,043)		(6,047)		(5,135)
Selling, general and administrative	(5,233)		(5,127)		(4,345)
Total operating expenses	(11,276)		(11,174)		(9,480)
Operating income	8,335		9,435		6,077

 

 

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

 

	For the three months ended
	Mar. 31 2025		Dec. 31 2024		Mar. 31 2024 (Retrospectively Adjusted)
Net revenues	62,295		74,895		59,365
Cost of revenues	(56,767)		(68,713)		(53,913)
Gross profit	5,528		6,182		5,452
Operating expenses:
Research and development	(1,580)		(1,673)		(1,533)
Selling, general and administrative	(2,340)		(2,523)		(2,310)
Total operating expenses	(3,920)		(4,196)		(3,843)
Operating income	1,608		1,986		1,609

 

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

 

			As of Mar. 31, 2025			As of  Dec. 31 2024
Current assets
Cash and cash equivalents			77,100			76,493
Financial assets – current			16,435			9,376
Trade receivables			109,717			113,420
Inventories			59,858			61,181
Others			15,542			14,815
Total current assets			278,652			275,285
Financial assets – non-current & Investments – equity -method			41,428			41,810
Property, plant and equipment			342,056			312,531
Right-of-use assets			11,754			11,851
Intangible assets			66,955			67,562
Others			33,332			31,659
Total assets			774,177			740,698
Current liabilities
Short-term borrowings[3]			55,485			47,445
Current portion of bonds payable & Current portion of long-term borrowings			20,774			18,883
Trade payables			74,382			78,221
Others			117,101			86,391
Total current liabilities			267,742			230,940
Bonds payable			21,066			17,978
Long-term borrowings			126,708			121,750
Other liabilities			23,638			24,243
Total liabilities			439,154			394,911
Equity attributable to shareholders of the parent			311,522			323,523
Non-controlling interests			23,501			22,264
Total liabilities & shareholders' equity			774,177			740,698
Current ratio			1.04			1.19
Net debt to equity ratio			0.41			0.37

 

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

 

		For the three months ended
		Mar. 31 2025					Dec. 31 2024				Mar. 31 2024 (Retrospectively Adjusted)
	Cash Flows from Operating Activities:
	Income before tax		9,810			11,441				7,812
	Depreciation & amortization		16,092			15,360				14,599
	Other operating activities items		(5,929)			8,444				(5,717)
	Net cash generated from operating activities		19,973			35,245				16,694
	Cash Flows from Investing Activities:
	Net payments for property, plant and equipment		(36,349)			(31,546)				(12,513)
	Other investment activities items		(1,212)			(11)				(2,995)
	Net cash used in investing activities		(37,561)			(31,557)				(15,508)
	Cash Flows from Financing Activities:
	Net proceeds from (repayment of) borrowings and bonds		16,149			(1,952)				(139)
	Other financing activities items		262			(121)				(33)
	Net cash generated from (used in) financing activities		16,411			(2,073)				(172)
	Foreign currency exchange effect		1,784			3,167				6,807
	Net increase in cash and cash equivalents		607			4,782				7,821
	Cash and cash equivalents at the beginning of period		76,493			71,711				67,284
	Cash and cash equivalents at the end of period		77,100			76,493				75,105

 

[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] Short-term borrowings include short-term 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 ASX's Q1 2025 earnings per share and revenue growth?

ASX reported Q1 2025 basic earnings per share of NT$1.75 (US$0.106 per ADS), with net revenues of NT$148,153 million, representing an 11.6% year-over-year growth but an 8.7% sequential decline.

How did ASX's packaging and testing segments perform in Q1 2025?

ASX's ATM (packaging and testing) operations generated NT$86,668 million in revenue, up 17.3% year-over-year, with packaging representing 46% and testing 11% of total revenues. The segment maintained a strong gross margin of 22.6%.

What is ASX's customer concentration risk in Q1 2025?

ASX's top 5 customers accounted for 44% of total revenues, with two customers each contributing over 10% of revenues. The top 10 customers represented 61% of total revenues in Q1 2025.

What was ASX's capital expenditure in Q1 2025?

ASX's total equipment capital expenditure in Q1 2025 was US$892 million, with US$395 million for packaging, US$472 million for testing, US$23 million for EMS, and US$2 million for interconnect materials and others.

How did ASX's automotive and consumer segments perform in Q1 2025?

In ASX's ATM operations, automotive, consumer & others segments contributed 30% of revenues. In the EMS division, automotive represented 10% and consumer electronics accounted for 31% of revenues.