TAIPEI (Taiwan News) — Semiconductor packaging and tester ASE posted NT$148.15 billion (US$4.62 billion) in Q1 revenue on Wednesday, a quarterly decline of 9% but an 11.6% year-on-year increase.

The company said it expects its semiconductor testing business, particularly for AI chips, to grow this year, per CNA. By year-end, testing could make up 19% to 20% of combined revenue from packaging, testing, and materials, it added.

Net profit declined 19% and earnings per share dropped from NT$2.15 to NT$1.75, reflecting seasonal and exchange rate factors, per Anue. Still, the company struck an optimistic tone about near-term growth in high-value segments.

Communications accounted for 48% of Q1 packaging and testing materials revenue, followed by computers at 22%, with automotive, consumer electronics, and others making up the remaining 30%. The top 10 customers contributed roughly 61% of total revenue.

Looking to Q2, ASE said it expects packaging and testing revenue to grow by 9% to 11% quarter-on-quarter, with gross margin improving by 1.4 to 1.8 percentage points. Its electronics manufacturing services business, by contrast, is projected to decline 10% year-on-year, following typical seasonal patterns.

Analysts estimate Q2 revenue will range from NT$151.9 billion to NT$152 billion, a modest increase of 2% to 3% from Q1. ASE said it remains focused on expanding AI-related testing capabilities to capture long-term growth.