ASE Technology Holding Co., Ltd. (NYSE: ASX)

ASE Technology Holding Co., Ltd., commonly known by its stock symbol ASX, is a prominent player in the semiconductor manufacturing services industry. The company was established in 2018 as a result of the merger between Advanced Semiconductor Engineering, Inc. and Siliconware Precision Industries Co., Ltd. ASE is a company registered under the R.O.C. Company Law and is listed on the Taiwan Stock Exchange (TWSE) under the symbol 3711 and on the New York Stock Exchange (NYSE) under the ticker symbol ASX.

ASE's primary business activities revolve around semiconductor manufacturing services, including packaging, testing, and Electronics Manufacturing Services (EMS). These services cater to a diverse range of industries, such as communications, computing, consumer electronics, industrial, automotive, and server applications. ASE's expertise in packaging technology has allowed the company to develop sophisticated solutions, such as flip chip packaging, bump chip carrier packaging, stacked die packaging, and fine-pitch wire bonding.

The company's revenue is primarily generated through its packaging services, which encompass a wide array of package types. These include flip chip BGA, flip chip CSP, aCSP, QFP, LQFP/TQFP, BCC, QFN packages, aQFN, and Plastic BGA. Additionally, ASE offers 3D chip packages, such as aMAP POP and HB PoP, which facilitate easier mounting of packages and enhance performance. ASE's testing services encompass front-end engineering testing, wafer probing, final testing, and other related semiconductor testing services. The company's EMS services are utilized in various end-use applications, including computing, peripherals, communications, industrial applications, automotive electronics, and server applications.

ASE maintains a strong presence in key centers of semiconductor and electronics manufacturing, including Taiwan, China, Korea, Malaysia, Singapore, Vietnam, Mexico, and Europe. The company's significant operations in Taiwan, a leading center for outsourced semiconductor and electronics manufacturing, further strengthen its position in the industry.

In terms of competitive advantages, ASE boasts a strong track record of innovation, with a focus on developing new packaging technologies and designs. The company has made substantial investments in research and development, which has enabled it to maintain a technological edge over its competitors. ASE's strategic alliance with Taiwan Semiconductor Manufacturing Company (TSMC) designates the company as their non-exclusive preferred provider of packaging and testing services for semiconductors manufactured by TSMC. This alliance allows ASE to offer customers a comprehensive semiconductor manufacturing solution that includes access to foundry services in addition to its packaging, testing, and direct shipment services.

ASE's customer base includes leading semiconductor companies such as Intel, Samsung, and TSMC, as well as fabless semiconductor companies such as Qualcomm and Broadcom. These companies are situated in a variety of industries, including communications, computing, consumer electronics, industrial, automotive, and server applications.

ASE's financial performance has been robust in recent years, with revenue growing from NT$143.8 billion in 2018 to NT$241.9 billion in 2023, representing a compound annual growth rate (CAGR) of 12.1%. The company's net income has also grown significantly, increasing from NT$14.4 billion in 2018 to NT$23.5 billion in 2023, representing a CAGR of 14.1%.

In terms of its product and service offerings, ASE provides wirebonding packages that include a range of products such as aQFN, QFP, LQFP/TQFP, QFN, and PLCC. The company's advanced packages include flip chip BGA, flip chip CSP, aCSP, and stacked die packaging. ASE's heterogeneous integration solutions encompass SiP and modules, which integrate multiple components into a single package.