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ASE Technology to see rapid LEAP revenue growth and 10-15% CoWoS price hikes in 2026

Thursday, March 12, 2026 at 08:39 AM

GF Securities has initiated coverage on ASE Technology with a Buy rating, highlighting the company as a primary beneficiary of the AI infrastructure boom. The report projects ASE's advanced packaging (LEAP) revenue to reach US$3.2 billion in 2026 and US$4.7 billion in 2027, driven by TSMC outsourcing interposer and probe testing for Nvidia and the ramp of the Rubin platform. Analysts expect TSMC to raise CoWoS prices by 10-15% in 2026 due to tight supply, which will serve as a sector catalyst. Furthermore, ASE is expected to benefit from AMD's Full Process business and the mass production of Nvidia's CoWoP (Chip on Wafer on Panel) starting in the second half of 2027.

Context

As of March 12, 2026, ASE Technology is emerging as a dominant force in the AI supply chain, with management raising its 2026 LEAP (advanced packaging) revenue guidance to $3.2 billion. This reflects a doubling from 2025 levels, driven by a surge in outsourcing from TSMC, which is struggling to meet massive demand for CoWoS capacity from Nvidia, AMD, and Google. Analysts expect TSMC to implement 10–15% price hikes for CoWoS in 2026, a move likely to act as a catalyst for the broader OSAT sector and support ASE's path toward 30% gross margins. During the recent Q4 2025 earnings call, CFO Joseph Tung stated that the company is "at least gonna double our LEAP revenue" in 2026, noting that momentum remains strong despite capacity constraints. This expansion is supported by ASE's aggressive CapEx, including a NT$2.8 billion facility acquisition in Zhunan to handle high-complexity projects like Nvidia's Vera and AMD's Venice processors. Looking toward 2027, ASE's next-generation CoWoP technology and square substrate packaging are expected to further scale output to meet the persistent AI chiplet bottleneck.