Juan in search of Taiwan

Good morning my dears,

I need to find the perfect semiconductor for a project. And where would you find it if not in Taiwan? So dear Juan set off on his journey.

I had written him a cheat sheet:

TSMC has already been presented many times
Nevertheless, it would be nice if the company were to collaborate with the King of Semiconductors Jensen Huang.
Another highlight would be if the company also has a position in the fields of optoelectronics and photonics.

My dears, and what can I tell you. Juan has done his homework well.

And so today we can present you with a company that is active in these important technologies through the back door, in the form of subsidiaries and holdings. And on top of that, there's even LIDAR.

And let's compare it with the companies in these sectors, which have been making one high after another for weeks. With a forward P/E ratio of 23 and a PEG of 0.50, our current company is perhaps even a small insider tip.

Of course, I would like to ask you for your opinion, how do you see the company?

And the company that Juan has found for us is ASE Technology Holding $ASX (+3,42%)

ASE Technology Holding Co Ltd is a Taiwan-based company that mainly invests in packaging services, testing services, electronic product assembly technology and manufacturing services. The investment business includes general investment projects. The packaging and testing business provides integrated circuit (IC) services, including packaging and module design, IC packaging, multi-chip packaging, micro and hybrid modules, memory packaging, front-end testing, wafer probe testing, finished product testing, substrate design and manufacturing. The electronics manufacturing service business mainly provides a series of professional services such as development and design, material procurement, production and manufacturing, logistics, maintenance and other after-sales services for domestic and foreign brand manufacturers in the fields of communications, consumer electronics, computers, memory industry, automotive electronics and other types of electronic products.

Number of employees: 105,955

With over 95,000 employees worldwide, ASE operates manufacturing facilities in several countries, including Taiwan, China, South Korea, Japan, Singapore, Malaysia, Vietnam, Mexico, the United States, Poland, France, the United Kingdom, Germany, Tunisia and the Czech Republic.

ASE Industrial published its figures for the quarter ended December 31, 2025 at the trimonthly financial conference on February 5, 2026.

Earnings per share of USD 0.22 were presented. In the previous year, earnings per share amounted to USD 0.130.

Revenue for the past quarter was reported at USD 5.73 billion - an increase of 14.24% compared to the same quarter of the previous year, when USD 5.02 billion was reported.

EPS for the year as a whole was put at USD 0.600. The previous year's figure was USD 0.470 per share.

Annual sales were put at USD 20.71 billion, compared to USD 18.54 billion in the previous year.

Editorial finanzen.net

USI subsidiary Universal Optoelectronics acquires controlling stake in Eugenlight Technologies, furthering the integration of the optical interconnect industry

January 16, 2026

USI (SSE: 601231), a subsidiary of ASE Technology Holding Co, Ltd (TWSE: 3711, NYSE: ASX), has announced that its subsidiary Universal Optoelectronics has acquired a controlling stake in EugenLight Technologies - a strategic move aimed at consolidating its position in the global optical interconnect ecosystem. By integrating EugenLight's expertise in high-speed optoelectronic components and silicon photonics - breakthrough technologies essential for AI data centers, LiDAR and photonic computing - USI, together with parent company ASE Holdings, aims to enhance its capabilities in rack system integration and advanced packaging.

USI-Tochtergesellschaft Universal Optoelectronics erwirbt Kontrollbeteiligung an Eugenlight Technologies und fördert die Integration der optischen Interconnect-Industrie | ASE-Holdings

ASE breaks ground on new high-tech facility in Kaohsiung, investing NT$17.8 billion to meet demand for AI chips

March 11, 2026

ASE startet den ersten Spatenstich für eine neue Hightech-Anlage in Kaohsiung und investiert 17,8 Milliarden NT$ zur Deckung der Nachfrage nach KI-Chips. ASE-Holdings

ASE starts construction of a new Renwu power plant to build a high-tech test cluster

April 10, 2026

ASE startet den ersten Spatenstich für ein neues Renwu-Werk zum Bau eines Hightech-Testclusters | ASE-Holdings

ASE Technology Holdings recognized as one of Taiwan's top 10 sustainable companies for the third consecutive year and received 16 awards, demonstrating leadership in environmental, social and governance (ESG) practices

December 1, 2025

ASE Technology Holdings wurde zum dritten Mal in Folge als eines der Top 10 nachhaltigen Unternehmen in Taiwan ausgezeichnet und erhielt 16 Auszeichnungen, was Führungsstärke in Umwelt-, Sozial- und Governance-Praktiken (ESG) zeigt. ASE-Holdings

ASE introduces IDE 2.0 - AI-powered platform accelerates housing design accuracy and innovation

November 4, 2025

ASE stellt IDE 2.0 vor – KI-optimierte Plattform beschleunigt die Genauigkeit und Innovation des Gehäusedesigns | ASE-Holdings

ASE and Analog Devices announce strategic collaboration

October 21, 2025

ASE und Analog Devices kündigen strategische Zusammenarbeit an | ASE-Holdings

SPIL hosts NVIDIA founder and CEO Jensen Huang at new fab site to accelerate semiconductor assembly and test services

January 16, 2025

Siliconware Precision Industries Co, Ltd ("SPIL"), a subsidiary of ASE Technology Holding Co, Ltd (TWSE: 3711, NYSE: ASX), welcomed Jensen Huang, founder and CEO of NVIDIA, to the opening ceremony of its Tan Ke Plant facility. The Chairman of SPIL, C.W. Tsai, met with NVIDIA Founder and CEO Jensen Huang and highlighted the close cooperation between the two companies as they work together to usher in the new era of AI chip innovation.

SPIL empfängt den NVIDIA-Gründer und CEO Jensen Huang auf dem neuen Fabrikgelände zur Beschleunigung der Halbleitermontage und Testdienstleistungen | ASE-Holdings

Sales breakdown by business unit:

2025 (TWD)

Packaging 314 billion

Electronic Manufacturing Service (EMS) 289 billion

Testing 72.46 billion

Others 16.38 bn

Adjustments and Eliminations -46.37 billion

Geographical distribution of sales:

2025 (TWD)

U.S. 366 bn

Taiwan 116 billion

Asia 97.82 billion

Europe 64.91 bn

Other 897 million

Brief summary of the key financial figures (2025-2028)

ASE shows from 2025 a significant operational recoveryacross all key performance indicators. Revenue, EBIT and net income grow double-digit growthwith 2026 in particular being a margin leap year year. Profitability improves significantly: EBITDA margin rises from 18% to over 27%, EBIT margin from 7.9% to almost 15%.

The free cash flow development is initially weak (negative in 2025 due to extremely high CAPEX), but turns strongly positive from 2026 onwards. Net debt rises sharply in 2025/26, but is reduced again from 2027 - at the same time, the leverage ratio falls to a very solid level by 2028.

All in all, ASE provides a picture of scaling growth, rising margins, decreasing risk and clearly improved return on investment (ROE of up to 25 %). For investors, this looks like a classic turnaround into structural growth.

(TWD in millions)

Market value 2,034,392

Number of shares (in thousands) 4,375,036

Date of publication 05,02,2026

Brief summary of the valuation ratios

In terms of valuation, ASE acts as a classic transitional value: expensive in the short term, fair in the medium term, cheap in the long term. The P/E ratio will remain high in 2025-2026 because earnings will only pick up with a delay. From 2027, the picture changes: earnings scale faster than the share price, causing the P/E ratio to fall significantly and the valuation to become more attractive.

The PEG curve is the strongest indicator: from 2026, it is stable in the 0.5-0.6 range - a level that normally indicates undervaluation with high growth growth. The dividend yield increases moderately, but remains more of a bonus than a core argument.

FCF yield turns positive from 2026 and improves strongly, further underpinning the valuation. Overall, ASE shows a profile that will turn into a structurally structurally favorable valuation valuation from 2027 onwards, while the operating performance increases significantly at the same time. For investors, this means Valuation and growth will start to move in the same direction from 2027 - a positive setup.

⭐ Overall score: 6.8 / 10

🎯 Realistic tenbagger probability: 10-15%

📌 Juan's conclusion

ASE is not a classic Tenbagger moonshotbut a solid compounderthat will enter a phase from 2027 in which:

Margins rise sharply
FCF turns massively
Valuation becomes more favorable
Risk decreases
ROE moves towards 25%

This is a high-quality setupbut not explosive enough for a 10× story in 5-7 years.

A doubling to tripling is more likelynot a tenfold increase.

Performance

1 week +10.16 %

1 month +38.90

6 months +133.44 %

1 year +269.54 %

3 years +322.25 %

Ladies and gentlemen, the next correction should be coming. Figures will also be presented next week.

$ASX (+3,42%)

PRICE €25.50 (23.04.2026 at 07:52)

Lennart@-Lennart-

5Mês

Thanks for the article. I think it's an exciting company. I've been invested for some time.

•

Brian@Aktienhauptmeister

Good morning Tenbagger, I've just taken a close look at your post and here you get the full broadside. Buckle up colleague!

In your post, ASE is described as a "solid compounder" and not a "moonshot". I take a more optimistic view. ASE is not a classic "high-flyer", but an infrastructure monopolist. While chip designers (NVIDIA) design the plans, ASE is the one pushing the physical boundaries of hardware through advanced packaging (LEAP/CPO).

🧬REAPER-DNA CHECK:

1. the growth explosion (DNA check)
- AI lever: 2026 is the "most aggressive year in the company's history" with 6 new plants worldwide (including the USA, Japan and Germany). In Kaohsiung alone, over USD 3.4 bn will flow into an AI testing hub
- Margin & EPS: Analysts expect EPS to jump by +68% (to ~$31 NT) in 2026. The operating margin target rises from 7.9% (2025) to 11-15%.
- Sales: Q1 2026 already shows YoY growth of +17.2%. The ATM (Assembly & Testing) division is even growing at +29.7%.

2. the strategic "Edge" (Photonics)
- Photonics joker: Through the acquisition of EugenLight and the start of CPO mass production (co-packaged optics) in 2026, ASE solves the biggest problem of AI data centers: the data transfer bottleneck.
- Moat: 58% of all logic chip companies state that packaging innovation is now the decisive factor for performance gains - ASE holds approx. 14% of the global market share here.

3.⚠️Risiken:
- Geopolitics: Taiwan risk remains (although ASE is more globally positioned than many think).
- Debt: Net debt is high in 2025/26 due to massive construction projects. Nothing must go wrong operationally here.

THE REAPER VERDICT
ASE is the infrastructure bet on AI that many are still overlooking because it sounds "boring".
Those who find TSMC too expensive and don't want to chase after NVIDIA will find the "enabler" in ASX. The setup for 2027 is excellent, as earnings growth should then "catch up" with the share price and drive it further.

Status: Watch (tendency to buy on setback)

REAPER SCORE 6.5/10 (mini devaluation compared to Juan's because the share price has already run hot)

Tenbagger-Capital@Tenbagger-Capital

@Aktienhauptmeister Thank you dear. It would be interesting to see a comparison with the competition. Especially with regard to the photonics sector

••

@Tenbagger2024 you get my dear. Here is the Reaper Battle with the fiercest competitors Amkor ($AMKR) and JCET (China).

1. the "Testing" advantage (the secret margin)
While Amkor and JCET do a lot of assembly, ASE dominates high-end testing.
- Fact: Testing margins are almost twice as high as assembly margins.
- ASE move: The share of testing in total sales is set to rise to over 20% by 2027. This is the reason for the EPS turbo.

2. the "Silicon Photonics" moat
ASE has a head start in optical connections thanks to the integration of EugenLight.
- Comparison: Amkor relies heavily on automotive (EVs). That's good, but cyclical. ASE relies on the heart of AI data centers (CPO).
- Result: When data centers switch to light waves, there is currently only one address that can package this at scale: ASE.

3. the valuation (the "Tenbagger" paradox)
Although ASE is the market leader, the share is often valued more favorably than Amkor.
- Amkor P/E: ~28x (growth +25%)
- ASE P/E: ~23x (growth +68%)
- Reaper mustard: The market is still penalizing ASE for its proximity to Taiwan. But with the new plants in Japan and Germany (see your screenshots) this risk premium will soon disappear.

🧪 DNA-BATTLE VERDICT
ASE vs Amkor:
Amkor is the "Solid Craftsman" for cars and smartphones. ASE is the "AI engineer". If you are looking for massive scaling of AI hardware, ASE is the way to go. Amkor is a stable investment, but ASE has the significantly higher tenbagger probability due to the EPS jump and the low PEG.

ASE vs. JCET:
No comparison. JCET is politically too risky and technologically well behind in the sub-5nm packaging sector.

🎯 MY VERDICT ON THE BATTLE

"Amkor builds the body, ASE builds the warp drive."
ASE is massively more efficient at monetizing the AI trend compared to its peers. The PEG of 0.5 (ASE) vs. 1.1 (Amkor) clearly shows that Wall Street has not yet fully reflected ASE's earnings explosion in the share price.

Max@Maximilian1

My dear. Let's see if he finds his way.