SIGNALCapital Markets·May 29, 2026, 11:51 PMSignal70Medium term

ASE Technology: The Advanced Packaging Story Is Believable, But The Valuation Might Be Stretched

Why this matters
Why now

The increasing demand for advanced packaging in semiconductors is a critical and growing bottleneck for the next generation of AI and high-performance computing.

Why it’s important

Advanced packaging is essential for improving chip performance and density, making it a key battleground in the global semiconductor supply chain and impacting future technological capabilities.

What changes

The market's perception of advanced packaging companies is becoming more pronounced, leading to higher valuations, but also scrutiny regarding sustainability and potential overextension.

Winners
  • · Advanced packaging innovators
  • · High-performance computing sector
  • · AI hardware developers
Losers
  • · Companies unable to secure advanced packaging capacity
  • · Investors valuing purely on hype
  • · Legacy packaging providers
Second-order effects
Direct

Increased investment and R&D into advanced packaging technologies will likely accelerate.

Second

New competitive dynamics could emerge as more players attempt to enter or scale advanced packaging capabilities.

Third

Geopolitical competition over advanced packaging intellectual property and manufacturing capacity may intensify.

Editorial confidence: 85 / 100 · Structural impact: 60 / 100
Original report

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