ASE Technology Holding Co., Ltd. Reports Its Unaudited Consolidated Financial Results for the Second Quarter of 2026

TAIPEI , July 30, 2026 /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$191,064 million for 2Q26, up by 26.7% year-over-year and up by 10.0% sequentially. Net income attributable to shareholders of the parent for the quarter totaled NT$21,068 million, up from NT$7,521 million in 2Q25 and up from NT$14,132 million in 1Q26. Basic earnings per share for the quarter were NT$4.80 (or US$0.304 per ADS), compared to NT$1.74 for 2Q25 and NT$3.23 for 1Q26. Diluted earnings per share for the quarter were NT$4.61 (or US$0.292 per ADS), compared to NT$1.70 for 2Q25 and NT$3.08 for 1Q26. RESULTS OF OPERATIONS 2Q26 Results Highlights – Consolidated Net revenues from packaging operations, testing operations, EMS operations, and others represented approximately 52%, 13%, 34%, and 1% of the total net revenues for the quarter, respectively. Cost of revenues was NT$150,914 million for the quarter, up from NT$138,844 million in 1Q26. - Raw material cost totaled NT$86,253 million for the quarter, representing 45% of the total net revenues. - Labor cost totaled NT$21,920 million for the quarter, representing 11% of the total net revenues. - Depreciation, amortization and rental expenses totaled NT$18,441 million for the quarter. Gross margin increased by 1 percentage point to 21.0% in 2Q26 from 20.0% in 1Q26. Operating margin was 11.1% in 2Q26, compared to 10.1% in 1Q26. Non-operating items: - Net interest expense was NT$1,853 million. - Net gain on foreign exchange hedging activities of NT$3,637 million. - Net gain on equity-method investments was NT$2,298 million. - Other net non-operating income was NT$484 million, primarily attributable to miscellaneous income. Total non-operating income for the quarter was NT$4,566 million. Income before tax was NT$25,700 million in 2Q26, compared to NT$18,161 million in 1Q26. We recorded income tax expenses of NT$4,172 million for the quarter, compared to NT$3,629 million in 1Q26. Net income attributable to shareholders of the parent was NT$21,068 million in 2Q26, compared to NT$7,521 million in 2Q25 and NT$14,132 million in 1Q26. Our total number of shares outstanding at the end of the quarter was 4,470,572,282, including treasury stock owned by our subsidiaries in 2Q26. Our 2Q26 basic earnings per share of NT$4.80 (or US$0.304 per ADS) were based on 4,386,711,875 weighted average number of shares outstanding in 2Q26. Our 2Q26 diluted earnings per share of NT$4.61 (or US$0.292 per ADS) were based on 4,505,702,583 weighted average number of shares outstanding in 2Q26. 2Q26 Results Highlights – ATM Net revenues were NT$126,148 million for the quarter, up by 36.3% year-over-year and up by 12.2% sequentially. Cost of revenues was NT$91,657 million for the quarter, up by 26.7% year-over-year and up by 10.1% sequentially. - Raw material cost totaled NT$34,782 million for the quarter, representing 28% of the total net revenues. - Labor cost totaled NT$18,255 million for the quarter, representing 14% of the total net revenues. - Depreciation, amortization and rental expenses totaled NT$16,940 million for the quarter. Gross margin increased by 1.3 percentage points to 27.3% in 2Q26 from 26.0% in 1Q26. Operating margin was 15.7% in 2Q26, compared to 14.1% in 1Q26. 2Q26 Results Highlights – EMS Net revenues were NT$65,789 million, up by 11.9% year-over-year and up by 6.3% sequentially. Cost of revenues for the quarter was NT$59,916 million, up by 12.6% year-over-year and up by 7.0% sequentially. - Raw material cost totaled NT$51,810 million for the quarter, representing 79% of the total net revenues. - Labor cost totaled NT$3,595 million for the quarter, representing 5% of the total net revenues. - Depreciation, amortization and rental expenses totaled NT$1,259 million for the quarter. Gross margin decreased by 0.6 percentage points to 8.9% in 2Q26 from 9.5% in 1Q26. Operating margin was 2.4% in 2Q26, compared to 3.0% in 1Q26. LIQUIDITY AND CAPITAL RESOURCES Equipment capital expenditures in 2Q26 totaled US$1,695 million, of which US$840 million was used in packaging operations, US$804 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$396,197 million as of June 30, 2026. Current ratio was 1.07 and net debt to equity ratio was 0.47 as of June 30, 2026. Total number of employees was 114,179 as of June 30, 2026, compared to 107,950 as of March 31, 2026. BUSINESS REVIEW Customers ATM BASIS Our five largest customers together accounted for approximately 44% of our total net revenues in 2Q26, compared to 43% in 1Q26. One customer accounted for more than 10% of our total net revenues in 2Q26. Our top 10 customers contributed 60% of our total n