美银上调日月光ASE目标价至900新台币，称3Q26营收超预期、LEAP先进封装放量

Accessible version

ASE Technology Holding
3Q26 sales outperformance affirms solid
transformation progress
Reiterate Rating: BUY | PO: 900.00 TWD | Price: 762.00 TWD

3Q26 sales beat on LEAP ramp and mature ASP strength

13 October 2026

ASE reported 3Q26 sales +28% QoQ better than its guide, driven by stronger IC ATM
(+20% QoQ vs. BofAe +13% QoQ) and mild upside in EMS (+42% QoQ vs. BofAe +40%
QoQ). We believe IC ATM strength is led by modest mainstream packaging and testing
price hike on industry supply tightness, supplemented by LEAP business ramp. EMS also
benefited from Apple product seasonal builds and higher component cost pass through.
With improving packaging and testing utilization and ASP and rising LEAP mix, we
expect its IC ATM GMs to improve 300bps QoQ to 30% (vs. high-20% guide) though
consolidated GMs (+180bps QoQ to 23%) could be partially offset by EMS outgrowth.

Equity

AI pipeline diversification anchors capex plan in ’26-28
We model ASE’s 4Q26 IC ATM sales +7-9% QoQ as its LEAP opportunity diversifying
from TSMC outsourcing to direct project wins including AMD’s Venice CPU, putting sales
on track to +42% YoY in ’26 (vs. its +35% guide). Its IC ATM GMs could further expand
to 31% as LEAP reaching 30% of its sales (vs. 18%/22% in 1H/3Q26). While we expect
ASE to spend US$13bn+ annual capex in ’27-28 (vs. US$10.5bn in ’26), the accelerating
IC ATM sales (BofAe +40% CAGR from ’26-28) on advanced expansion and mature price
uplift, along with the business mix upgrade to cloud AI/HPC projects carrying 35-45%
GMs should offset hiking depreciation (BofAe +39% CAGR from ’26-28), lifting its IC
ATM GM from 29% in ’26 to low 30% in ’27 and mid 30% in ’28 with operating leverage.

Stronger earnings quality unlocks re-rating potential

We lift our ’26/27/28E EPS to NT$20/NT$34/NT$50 on strong LEAP outlook. Keep Buy
rating and raise POs from NT$800 (US$51) to NT$900 (US$58) still on 20x 2H27-1H28
P/E (vs. its 5-26x range) backed by its structural business transformation with better
sales and GMs growth profile as the industry supply further consolidates amid higher
tech entry barrier.
Estimates (Dec) (NT$)
Net Income (Adjusted - mn)
EPS
EPS Change (YoY)
Consensus EPS (Visible Alpha)
Dividend / Share
Free Cash Flow / Share
ADR EPS (US$)
ADR Dividend / Share (US$)
Valuation (Dec)
P/E
Dividend Yield
EV / EBITDA*
Free Cash Flow Yield*

2024A
36,902
7.70
4.0%

2025A
43,283
9.30
20.8%
5.70
(5.16)
0.597
0.366

2026E
90,393
19.64
111.1%
18.46
12.20
(36.00)
1.23
0.764

2027E
156,574
34.26
74.5%
28.72
21.50
(43.18)
2.15
1.35

2028E
226,147
49.78
45.3%
38.80
31.20
(10.66)
3.12
1.95

5.30
2.61
0.480
0.330
98.95x
0.696%
38.92x
0.331%

81.93x
0.748%
32.62x
-0.657%

38.80x
1.60%
19.93x
-4.64%

22.24x
2.82%
11.45x
-5.58%

15.31x
4.09%
8.12x
-1.38%

* For full definitions of iQ method SM measures, see page 7.

Key Changes
(NT$)

Previous

Current

Price Obj.

800.00

900.00

2026E EPS

18.13

19.64

2027E EPS

30.90

34.26

2028E EPS

45.30

49.78

2026E EBITDA (m)

184,814.6

193,427.9

2027E EBITDA (m)

317,549.5

336,641.2

2028E EBITDA (m)

449,629.5

474,983.2

Haas Liu >>
Research Analyst
Merrill Lynch (Taiwan)
+886 2 2376 3727
haas.liu@bofa.com
Mike Yang >>
Research Analyst
Merrill Lynch (Taiwan)
mike.c.yang@bofa.com
Cathy Hsu >>
Research Analyst
Merrill Lynch (Taiwan)
cathy.hsu3@bofa.com

Stock Data
Price (Common / ADR)

900.00 TWD / 58.00 USD

Date Established

13-Oct-2026 / 13-Oct-2026

Investment Opinion
52-Week Range

C-1-7 / C-1-7
168.50 TWD-765.00 TWD

Market Value (mn)

106,687 USD

Market Value (mn)

3,406,576 TWD

Shares Outstanding (mn)

4,470.6 / 2,235.3

Average Daily Value (mn)

393.20 USD

Free Float
BofA Ticker / Exchange
BofA Ticker / Exchange
Bloomberg / Reuters

This research report provides general information only. No part of this report may be used
or reproduced or quoted in any manner whatsoever in Taiwan by the press or other
persons without the express written consent of BofA Securities.
>> Employed by a non-US affiliate of BofAS and is not registered/qualified as a research analyst
under the FINRA rules.
Refer to "Other Important Disclosures" for information on certain BofA Securities entities that take
responsibility for the information herein in particular jurisdictions.
BofA Securities does and seeks to do business with issuers covered in its research
reports. As a result, investors should be aware that the firm may have a conflict of
interest that could affect the objectivity of this report. Investors should consider this
report as only a single factor in making their investment decision.
Refer to important disclosures on page 8 to 11. Analyst Certification on page 5. Price
Objective Basis/Risk on page 5.
13027253

762.00 TWD / 46.43 USD

Price Objective

79.1%
XSRIF / TAI
ASX / NYS
3711 TT / 3711.TW

ROE (2026E)

21.8%

Net Dbt to Eqty (Dec-2025A)

41.5%

iQprofile ASE Technology Holding
SM

Key Income Statement Data (Dec)

2024A

2025A

2026E

2027E

2028E

(NT$ Millions)
Sales
Gross Profit
Sell General & Admin Expense
Operating Profit
Net Interest & Other Income
Associates
Pretax Income
Tax (expense) / Benefit
Net Income (Adjusted)
Average Fully Diluted Shares Outstanding

595,410
96,997
(28,935)
39,232
2,588
NA
41,820
(7,756)
36,902
4,333

645,388
114,193
(30,586)
50,756
545
NA
51,301
(9,460)
43,283
4,462

864,425
190,153
(38,450)
107,198
3,412
NA
110,610
(20,502)
90,393
4,506

1,151,475
314,081
(46,743)
211,750
(16,792)
NA
194,958
(36,664)
156,574
4,506

1,422,419
429,925
(52,992)
312,116
(29,302)
NA
282,814
(52,837)
226,147
4,506

Key Cash Flow Statement Data
Net Income
Depreciation & Amortization
Change in Working Capital
Deferred Taxation Charge
Other Adjustments, Net
Cash Flow from Operations
Capital Expenditure
(Acquisition) / Disposal of Investments
Other Cash Inflow / (Outflow)
Cash Flow from Investing
Shares Issue / (Repurchase)
Cost of Dividends Paid
Cash Flow from Financing
Free Cash Flow
Net Debt
Change in Net Debt

32,620
59,815
(3,706)
NA
2,058
90,788
(79,522)
1
(4,387)
(83,909)
1,103
(22,459)
(7,271)
11,266
109,225
20,146

40,658
67,440
(9,449)
NA
43,600
142,249
(164,643)
(1,971)
969
(165,644)
3,480
(23,034)
45,269
(22,393)
155,020
61,690

87,857
86,230
(25,495)
NA
27,147
175,738
(333,900)
4,511
(12,022)
(341,411)
2,203
(25,208)
89,859
(158,162)
333,215
195,130

154,368
124,891
(42,718)
NA
0
236,541
(426,600)
1,719
0
(424,881)
0
(54,471)
180,698
(190,059)
577,745
242,811

224,274
162,867
(36,340)
NA
0
350,802
(397,800)
(178)
0
(397,978)
0
(95,708)
80,876
(46,998)
720,452
142,885

Key Balance Sheet Data
Property, Plant & Equipment
Other Non-Current Assets
Trade Receivables
Cash & Equivalents
Other Current Assets
Total Assets
Long-Term Debt
Other Non-Current Liabilities
Short-Term Debt
Other Current Liabilities
Total Liabilities
Total Equity
Total Equity & Liabilities

312,531
152,881
113,420
84,883
76,982
740,698
140,237
23,735
53,872
177,068
394,911
345,787
740,698

421,115
154,423
125,042
100,223
88,530
889,333
214,510
57,108
40,734
203,615
515,966
373,368
889,333

699,889
202,546
155,261
38,298
101,726
1,197,720
304,588
90,750
66,926
222,390
684,654
513,066
1,197,720

1,063,727
224,320
210,110
28,937
118,340
1,645,435
544,588
90,750
62,094
250,739
948,171
697,263
1,645,435

1,384,481
250,667
255,747
62,815
132,949
2,086,659
724,588
90,750
58,678
266,697
1,140,713
945,946
2,086,659

Semiconductors

iQmethod - Bus Performance*
Return On Capital Employed
Return On Equity
Operating Margin
EBITDA Margin

6.2%
11.9%
6.6%
16.6%

6.9%
12.9%
7.9%
18.3%

10.7%
21.8%
12.4%
22.4%

14.6%
27.2%
18.4%
29.2%

15.9%
28.6%
21.9%
33.4%

iQmethod SM - Quality of Earnings*
Cash Realization Ratio
Asset Replacement Ratio
Tax Rate (Reported)
Net Debt-to-Equity Ratio
Interest Cover

2.5x
1.4x
18.5%
31.6%
5.8x

3.3x
2.6x
18.4%
41.5%
6.8x

1.9x
4.0x
18.5%
64.9%
8.7x

1.5x
3.5x
18.8%
82.9%
8.9x

1.6x
2.5x
18.7%
76.2%
9.4x

SM

Key Metrics
* For full definitions of iQ method SM measures, see page 7.

2

Company Sector

ASE Technology Holding | 13 October 2026

Company Description
Established in 1984 and headquartered in Taiwan, ASE
Technology Holding is the no.1 outsourced assembly and
testing (OSAT) firm globally, in terms of market share by
revenue. ASE acquired Siliconware Precision (SPIL) in 2018,
and had acquired USI in 2010, which became its EMS
business segment providing synergies in system-level
packaging. 2 shares = 1 ADR.

Investment Rationale
We rate ASE Buy, factoring in the company's opportunity in
advanced packaging and testing evidenced in TSMC's
outsourcing and its own heavy capex investment. The
strategy shift should allow the company to capture fast
growing addressable market in high performance
computing applications and improves its margins. ASE
could maintain its leading position in the Outsourced
Semiconductor Assembly and Test (OSAT) universe, owing
to its well-established footprints and widespread service
offerings.

Stock Data
Shares / ADR

2.00

Price to Book Value

7.1x

Key Changes
(US$)

Previous

Current

Price Obj.

51.00

58.00

2026E EPS

1.14

1.23

2027E EPS

1.94

2.15

2028E EPS

2.84

3.12

Focus charts and tables
Exhibit 1: ASE 3Q26-4Q26 and 2026-27 estimates BofAe vs. Street
We model 2026/27 EPS of NT$19.64/34.26
3Q26E
Sales (NT$mn)
Sales QoQ / YoY (%)
Gross profit (NT$mn)
GMs (%)
Operating profit (NT$mn)
OpMs (%)
Pretax profit (NT$mn)
Pretax margins (%)
Tax expense (NT$mn)
Tax rate (%)
Net profit (NT$mn)
Net margins (%)
EPS (NT$)

BofAe
$243,060
27.2%
$55,346
22.8%
$32,597
13.4%
$31,975
13.2%
-$6,448
20.2%
$25,527
10.5%
$5.67

Old
$233,274
22.1%
$49,494
21.2%
$27,638
11.8%
$27,016
11.6%
-$5,448
20.2%
$21,568
9.2%
$4.79

4Q26E
Street
$233,027
22.0%
$49,292
21.2%
$28,074
12.0%
$28,489
12.2%
-$5,781
20.3%
$22,709
9.7%
$5.11

BofAe
$256,640
5.6%
$59,808
23.3%
$35,935
14.0%
$34,735
13.5%
-$7,621
21.9%
$27,114
10.6%
$6.02

Old
$248,543
6.5%
$55,424
22.3%
$32,281
13.0%
$31,081
12.5%
-$6,816
21.9%
$24,265
9.8%
$5.39

2026E
Street
$241,478
3.6%
$53,676
22.2%
$31,848
13.2%
$32,092
13.3%
-$6,437
20.1%
$25,654
10.6%
$5.76

BofAe
$864,425
33.9%
$190,153
22.0%
$107,198
12.4%
$110,610
12.8%
-$22,754
20.6%
$87,857
10.2%
$19.64

Old
$846,543
31.2%
$179,917
21.3%
$98,585
11.6%
$101,997
12.0%
-$20,949
20.5%
$81,048
9.6%
$18.13

2027E
Street
BofAe
Old
Street
$837,179 $1,151,475 $1,089,719 $1,043,653
29.7%
33.2%
28.7%
24.7%
$177,390 $314,081 $290,641 $247,335
21.2%
27.3%
26.7%
23.7%
$98,311 $211,750 $192,658 $155,971
11.7%
18.4%
17.7%
14.9%
$103,760 $194,958 $175,866 $155,822
12.4%
16.9%
16.1%
14.9%
-$20,517 -$40,590 -$36,619 -$31,011
19.8%
20.8%
20.8%
19.9%
$83,243 $154,368 $139,247 $124,811
9.9%
13.4%
12.8%
12.0%
$18.78
$34.26
$30.90
$28.24

Source: BofA Global Research estimates, Bloomberg
BofA GLOBAL RESEARCH

Exhibit 2: ASE IC ATM revenue and GMs/OpMs
ASE’s LEAP business to drive IC ATM GM expansion to 37% in 2028

ASE's IC ATM sales (NT$mn)

GMs/OpMs

$1,200,000

60%

$1,000,000

50%

$800,000

40%

$600,000

30%

$400,000

20%

$200,000

10%
0%

$0
2020

2021

2022

2023

IC ATM sales

2024

2025

GMs

2026E 2027E 2028E
OpMs

Source: BofA Global Research estimates
BofA GLOBAL RESEARCH

ASE Technology Holding | 13 October 2026

3

Exhibit 3: ASE LEAP/IC ATM revenue
LEAP will account for 44% of IC ATM sales in 2028

ASE's LEAP/IC ATM
sales (US$mn)

Exhibit 4: ASE LEAP/non-LEAP/IC ATM GMs
LEAP is margin accretive to IC ATM business

ASE's LEAP % of IC ATM sales

ASE's LEAP/Non-LEAP/IC ATM GMs
50%

$35,000

70%

$30,000

60%

$25,000

50%

$20,000

40%

$15,000

30%

$10,000

20%

$5,000

10%

$0

0%

40%
30%
20%
10%
0%

2021 2022 2023 2024 2025E2026E2027E2028E
LEAP sales

IC ATM sales

LEAP % of IC ATM sales

Source: BofA Global Research estimates

LEAP GMs

BofA GLOBAL RESEARCH

Exhibit 5: ASE LEAP sales by subsegments and YoY
ASE’s full process packaging will see strong ramp from 2H26

ASE's LEAP sales (US$mn)

YoY

$17,500

300%

$15,000

250%

$12,500

200%

$10,000

150%

$7,500

100%

$5,000

50%

$2,500
$0

0%
2026

2027
2028
Full process
Chip/Wafer probing
Advanced packaging YoY
LEAP YoY

Source: BofA Global Research estimates
BofA GLOBAL RESEARCH

Exhibit 6: Terms and definitions
Glossary of abbreviations/acronyms
Term

Definition

ASIC
CPU
EMS
FOCoS
GPU
IC ATM
LEAP
oS

Application Specific Integrated Circuit
Central Processing Unit
Electronics Manufacturing Services
Fan-Out Chip on Substrate
Graphic Processing Unit
Integrated Circuit Assembly, Testing, and Material
Leading-Edge Advanced Packaging
On Substrate

Source: BofA Global Research
BofA GLOBAL RESEARCH

4

ASE Technology Holding | 13 October 2026

IC ATM GMs

Source: BofA Global Research estimates
BofA GLOBAL RESEARCH

2024
2025
Bumping - Low density fan out
oS process
Final testing
Advanced testing YoY

Non-LEAP GMs

Price objective basis & risk
ASE Technology Holding (XSRIF / ASX)
We value ASE Technology Holding at NT$900 per share (US$58 for ADR), based on 20x
2H27-1H28E P/E, above its historical range of 5-26x, in view of its solidified industry
position in AI era. We use P/E ratio to value ASE as the company has been able to
maintain healthy profitability through the cycles in the past 20 years due to
consolidating industry landscape supporting a more benign supply/demand and keeping
pricing and margins less cyclical.
Downside risks to our PO are 1) share loss and/or ASP erosion owing to Chinese players'
cannibalization and/or ASE's worsening execution, 2) weakening end demand due to
uncontrollable matters, such as macro halt and/or geopolitical tensions, 3) regulatory
issues that could hinder ASE from generating synergies and benefit its competitors.

Analyst Certification
I, Haas Liu, hereby certify that the views expressed in this research report accurately
reflect my personal views about the subject securities and issuers. I also certify that no
part of my compensation was, is, or will be, directly or indirectly, related to the specific
recommendations or view expressed in this research report.

Special Disclosures
Information on securities which are listed on the exchanges where ML Securities
(Taiwan) Limited is not permitted to trade or solicit trades for clients is for
informational purposes only and is not a recommendation or a solicitation to trade
such securities. ML Securities (Taiwan) Limited will not execute transactions for nor
accept orders from clients to trade such securities. Foreign investment in Taiwan
securities is regulated and restricted. Currently, foreign investment in Taiwan
securities is permitted by investment through: (1) global depository receipts, (2)
convertible bonds, (3) mutual funds issued offshore of Taiwan, and (4) a special
foreign institutional investors (FINIs) and foreign individual investors (FIDIs)
program supervised by the Taiwan SFB whereunder FINIs/FIDIs may apply for
investment ID to invest in Taiwan securities by registration with Taiwan Stock
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This report is distributed in Taiwan by Merrill Lynch Securities (Taiwan) Limited,
which is regulated by the Taiwan SFB.
APR - Semiconductor Coverage Cluster
Investment rating

Company

BofA Ticker

Bloomberg symbol

Analyst

Alchip
All Ring
AMEC
ASE Technology Holding
ASE Technology Holding -ADR
ASMPT
Aspeed
Chroma ATE

ALCPF
XNQNF
XRTOF
XSRIF
ASX
ASMVF
XLKMF
CRMJF

3661 TT
6187 TT
688012 CH
3711 TT
ASX US
522 HK
5274 TT
2360 TT

Haas Liu
Haas Liu
Dai Shen
Haas Liu
Haas Liu
Simon Woo, CFA
Mike Yang
Haas Liu

BUY

ASE Technology Holding | 13 October 2026

5

APR - Semiconductor Coverage Cluster
Investment rating

Company
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eMemory
GigaDevice
Global Unichip Corp.
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Horizon Robotics
Iluvatar CoreX
Ingenic
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JCET Group Co Ltd
King Yuan Electronics Corp.
Kinik
Macronix International
MediaTek
Montage Technology
MPI Corporation
Nanya Technology
NCE Power
OmniVision
Phison Electronics
Powerchip Semiconductor Manufacturing Co
Powertech Technology
Rockchip
Samsung C&T
Samsung Elec -G
Samsung Electronics
Samsung Electronics Preferred
Silergy Corp.
Silicon Motion
SK Hynix
SK Hynix ADR
SK Square
Taiwan Semiconductor Manufacturing Co.
Taiwan Semiconductor Manufacturing Co.
Vanguard International Semiconductor Co
Winbond Electronics
WinWay Technology
WT Microelectronics

BofA Ticker
DOSAF
XYLWF
XGXIF
GBUHF
XZOWF
HNSIF
XXPIF
HRZRF
XSIBF
XISCF
XSCHF
XJIEF
KYUFF
KIKCF
MXICF
MDTKF
XRDFF
XMJCF
NNYAF
XVFFF
XXHQF
PISNF
XCHPF
PWOGF
XRPXF
XCDTF
SSNHZ
SSNLF
SSNNF
SLEGF
SIMO
HXSCF
SKHY
SKSQF
TSM
TSMWF
VGILF
WBEKF
XWCLF
XZOPF

Bloomberg symbol
000150 KS
3529 TT
603986 CH
3443 TT
3131 TT
042700 KS
7769 TT
9660 HK
9903 HK
300223 CH
2577 HK
600584 CH
2449 TT
1560 TT
2337 TT
2454 TT
688008 CH
6223 TT
2408 TT
605111 CH
603501 CH
8299 TT
6770 TT
6239 TT
603893 CH
028260 KS
SMSN LI
005930 KS
005935 KS
6415 TT
SIMO US
000660 KS
SKHY US
402340 KS
TSM US
2330 TT
5347 TT
2344 TT
6515 TT
3036 TT

Analyst
Simon Woo, CFA
Mike Yang
Daley Li, CFA
Haas Liu
Haas Liu
Simon Woo, CFA
Haas Liu
Daley Li, CFA
Daley Li, CFA
Dai Shen
Daley Li, CFA
Dai Shen
Haas Liu
Haas Liu
Dai Shen
Haas Liu
Daley Li, CFA
Mike Yang
Simon Woo, CFA
Daley Li, CFA
Dai Shen
Simon Woo, CFA
Haas Liu
Simon Woo, CFA
Daley Li, CFA
Simon Woo, CFA
Simon Woo, CFA
Simon Woo, CFA
Simon Woo, CFA
Mike Yang
Simon Woo, CFA
Simon Woo, CFA
Simon Woo, CFA
Simon Woo, CFA
Haas Liu
Haas Liu
Haas Liu
Dai Shen
Mike Yang
Mike Yang

ASMedia Technology Inc.
Black Sesame Intl Holding
Hangzhou Silan Microelectronics
Lion Electronics
MetaX
Novatek
Realtek
Shenzhen Goodix
Soulbrain
VeriSilicon

XZSFF
BSIHF
XDFRF
XDHFF
XMEZF
NVKMF
RLTKF
XQPLF
XSBOF
XMLZF

5269 TT
2533 HK
600460 CH
605358 CH
688802 CH
3034 TT
2379 TT
603160 CH
357780 KS
688521 CH

Mike Yang
Daley Li, CFA
Daley Li, CFA
Dai Shen
Daley Li, CFA
Mike Yang
Haas Liu
Daley Li, CFA
Simon Woo, CFA
Daley Li, CFA

Crystal Clear
Faraday
GlobalWafers
Hua Hong Grace
LX Semicon
M31 Technology
Maxscend
Parade
United Microelectronics Corp.
United Microelectronics Corp.
Win Semiconductors
Wonik IPS

XPPTF
FDYTF
XWLFF
HHUSF
XLXSF
XMTZF
XMXSF
PRDWF
XUMIF
UMC
WSMIF
XRHQF

300655 CH
3035 TT
6488 TT
1347 HK
108320 KS
6643 TT
300782 CH
4966 TT
2303 TT
UMC US
3105 TT
240810 KS

Dai Shen
Haas Liu
Mike Yang
Dai Shen
Simon Woo, CFA
Mike Yang
Daley Li, CFA
Mike Yang
Haas Liu
Haas Liu
Haas Liu
Simon Woo, CFA

NEUTRAL

UNDERPERFORM

6

ASE Technology Holding | 13 October 2026

APR - Semiconductor Coverage Cluster
Investment rating

Company

BofA Ticker

Bloomberg symbol

Analyst

iQmethod SM Measures Definitions
Business Performance
Return On Capital Employed

Numerator
NOPAT = (EBIT + Interest Income) × (1 − Tax Rate) + Goodwill Amortization

Return On Equity
Operating Margin
Earnings Growth
Free Cash Flow

Net Income
Operating Profit
Expected 5 Year CAGR From Latest Actual
Cash Flow From Operations − Total Capex

Denominator
Total Assets − Current Liabilities + ST Debt + Accumulated Goodwill
Amortization
Shareholders’ Equity
Sales
N/A
N/A

Quality of Earnings
Cash Realization Ratio
Asset Replacement Ratio
Tax Rate
Net Debt-To-Equity Ratio
Interest Cover

Numerator
Cash Flow From Operations
Capex
Tax Charge
Net Debt = Total Debt − Cash & Equivalents
EBIT

Denominator
Net Income
Depreciation
Pre-Tax Income
Total Equity
Interest Expense

Valuation Toolkit
Price / Earnings Ratio
Price / Book Value
Dividend Yield
Free Cash Flow Yield
Enterprise Value / Sales

Numerator
Current Share Price
Current Share Price
Annualised Declared Cash Dividend
Cash Flow From Operations − Total Capex
EV = Current Share Price × Current Shares + Minority Equity + Net Debt +
Other LT Liabilities
Enterprise Value

Denominator
Diluted Earnings Per Share (Basis As Specified)
Shareholders’ Equity / Current Basic Shares
Current Share Price
Market Cap = Current Share Price × Current Basic Shares
Sales

EV / EBITDA

Basic EBIT + Depreciation + Amortization

iQ method SMis the set of BofA Global Research standard measures that serve to maintain global consistency under three broad headings: Business Performance, Quality of Earnings, and validations. The key features of

iQmethod are: A consistently structured, detailed, and transparent methodology. Guidelines to maximize the effectiveness of the comparative valuation process, and to identify some common pitfalls.
iQ database ® is our real-time global research database that is sourced directly from our equity analysts’ earnings models and includes forecasted as well as historical data for income statements, balance sheets, and cash
flow statements for companies covered by BofA Global Research.
iQ profile SM, iQ method SM are service marks of Bank of America Corporation. iQ database ® is a registered service mark of Bank of America Corporation.

ASE Technology Holding | 13 October 2026

7

Disclosures

Important Disclosures
ASE Technology (XSRIF) Price Chart

The Investment Opinion System is contained at the end of the report under the heading "Fundamental Equity Opinion Key". Dark grey shading indicates the security is restricted with the opinion suspended. Medium grey
shading indicates the security is under review with the opinion withdrawn. Light grey shading indicates the security is not covered. Chart is current as of a date no more than one trading day prior to the date of the
report.

ASE -ADR (ASX) Price Chart

The Investment Opinion System is contained at the end of the report under the heading "Fundamental Equity Opinion Key". Dark grey shading indicates the security is restricted with the opinion suspended. Medium grey
shading indicates the security is under review with the opinion withdrawn. Light grey shading indicates the security is not covered. Chart is current as of a date no more than one trading day prior to the date of the
report.

Equity Investment Rating Distribution: Technology Group (as of 30 Sep 2026)
Coverage Universe
Count
Percent
Buy
255
62.04%
Hold
82
19.95%
Sell
74
18.00%
Equity Investment Rating Distribution: Global Group (as of 30 Sep 2026)

Inv. Banking Relationships R1
Buy
Hold
Sell

Count
157
46
31

Percent
61.57%
56.10%
41.89%

Coverage Universe
Buy
Hold
Sell

Inv. Banking Relationships R1
Buy
Hold
Sell

Count
1386
563
446

Percent
67.38%
69.85%
59.95%

Count
2057
806
744

Percent
57.03%
22.35%
20.63%

Issuers that were investment banking clients of BofA Securities or one of its affiliates within the past 12 months. For purposes of this Investment Rating Distribution, the coverage universe includes only stocks. A stock
rated Neutral is included as a Hold, and a stock rated Underperform is included as a Sell.

R1

8

ASE Technology Holding | 13 October 2026

FUNDAMENTAL EQUITY OPINION KEY: Opinions include a Volatility Risk Rating, an Investment Rating and an Income Rating. VOLATILITY RISK RATINGS, indicators
of potential price fluctuation, are: A - Low, B - Medium and C - High. INVESTMENT RATINGS reflect the analyst’s assessment of both a stock’s absolute total return
potential as well as its attractiveness for investment relative to other stocks within its Coverage Cluster (defined below). Our investment ratings are: 1 - Buy stocks
are expected to have a total return of at least 10% and are the most attractive stocks in the coverage cluster; 2 - Neutral stocks are expected to remain flat or
increase in value and are less attractive than Buy rated stocks and 3 - Underperform stocks are the least attractive stocks in a coverage cluster. An investment
rating of 6 (No Rating) indicates that a stock is no longer trading on the basis of fundamentals. Analysts assign investment ratings considering, among other things,
the 0-12 month total return expectation for a stock and the firm’s guidelines for ratings dispersions (shown in the table below). The current price objective for a
stock should be referenced to better understand the total return expectation at any given time. The price objective reflects the analyst’s view of the potential price
appreciation (depreciation).

Investment rating

Total return expectation (within 12-month period of date of initial
rating)

Ratings dispersion guidelines for coverage clusterR2

Buy
≥ 10%
≤ 70%
Neutral
≥ 0%
≤ 30%
Underperform
N/A
≥ 20%
R2
Ratings dispersions may vary from time to time where BofA Global Research believes it better reflects the investment prospects of stocks in a Coverage Cluster.
INCOME RATINGS, indicators of potential cash dividends, are: 7 - same/higher (dividend considered to be secure), 8 - same/lower (dividend not considered to be
secure) and 9 - pays no cash dividend. Coverage Cluster is comprised of stocks covered by a single analyst or two or more analysts sharing a common industry,
sector, region or other classification(s). A stock’s coverage cluster is included in the most recent BofA Global Research report referencing the stock.
Price Charts for the securities referenced in this research report are available on the Price Charts website, or call 1-800-MERRILL to have them mailed.
BofAS or one of its affiliates acts as a market maker for the equity securities recommended in the report: ASE -ADR.
The issuer is or was, within the last 12 months, an investment banking client of BofAS and/or one or more of its affiliates: ASE Technology.
BofAS or an affiliate has received compensation from the issuer for non-investment banking services or products within the past 12 months: ASE Technology.
The issuer is or was, within the last 12 months, a non-securities business client of BofAS and/or one or more of its affiliates: ASE Technology.
BofAS or an affiliate expects to receive or intends to seek compensation for investment banking services from this issuer or an affiliate of the issuer within the next three months: ASE
Technology.
The country in which this issuer is organized has certain laws or regulations that limit or restrict ownership of the issuer's shares by nationals of other countries: ASE Technology.
BofAS or one of its affiliates is willing to sell to, or buy from, clients the common equity of the issuer on a principal basis: ASE -ADR.
The issuer is or was, within the last 12 months, a securities business client (non-investment banking) of BofAS and/or one or more of its affiliates: ASE Technology.
BofA Global Research personnel (including the analyst(s) responsible for this report) receive compensation based upon, among other factors, the overall profitability of Bank of America
Corporation, including profits derived from investment banking. The analyst(s) responsible for this report may also receive compensation based upon, among other factors, the overall
profitability of the Bank’s sales and trading businesses relating to the class of securities or financial instruments for which such analyst is responsible.

Other Important Disclosures
From time to time research analysts conduct site visits of covered issuers. BofA Global Research policies prohibit research analysts from accepting payment or reimbursement for travel
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Prices are indicative and for information purposes only. Except as otherwise stated in the report, for any recommendation in relation to an equity security, the price referenced is the publicly
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The date and time of completion of the production of any recommendation in this report shall be the date and time of dissemination of this report as recorded in the report timestamp.
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been considered and distributed in Japan by BofAS Japan, a registered securities dealer under the Financial Instruments and Exchange Act in Japan, or its permitted affiliates; is issued and

ASE Technology Holding | 13 October 2026

9

distributed in Hong Kong by Merrill Lynch (Hong Kong) which is regulated by HKSFC; is issued and distributed in Taiwan by Merrill Lynch (Taiwan); is issued and distributed in India by BofAS
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10

ASE Technology Holding | 13 October 2026

policy prohibits research personnel from disclosing a recommendation, investment rating, or investment thesis for review by an issuer prior to the publication of a research report containing
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