ASE Technology (ASX) is the world's largest [[OSATs - Outsourced Semiconductor Assembly and Test]] by revenue, competing directly with [[Amkor - AMKR]]. **What they do:** Massive scale across assembly, test, and packaging. Strong position in advanced packaging including 2.5D, [[Chiplets and Heterogeneous Integration]], and [[HBM and Package Integration]]. Taiwan-based with global operations. **Why it matters:** - Scale advantages in capacity and customer reach - Broad technology portfolio across packaging nodes - Direct exposure to [[Packaging Capacity Bottleneck]] as AI demand drives utilization **Current valuation (as of snapshot):** - Price: ~$16.83 - Forward PE: ~22-28x range - Similar valuation profile to AMKR **Value thesis:** If you believe packaging volumes grow structurally, ASE captures share due to scale. Like [[Amkor - AMKR]], trades like a cyclical industrial despite rising advanced packaging mix. **Risks:** - Same cyclicality and customer concentration as other OSATs - "Big company inertia" can slow technology transitions - Capex cycles can pressure cash flow **When to own:** - Smartphone/auto weakness compresses multiple while AI packaging keeps capex and utilization supported - Earnings stable or improving despite consumer headwinds - Balance sheet strength maintained **Portfolio role:** Optional second position in [[Concentrated Packaging Portfolio]]. Only add if you want redundancy in OSAT exposure, not if seeking different risk/return profile. Very similar to AMKR. **Ackman lens:** Do you learn anything new owning both ASE and AMKR? If not, pick your highest conviction name and concentrate there. Links: [[Advanced Packaging MOC]], [[OSATs - Outsourced Semiconductor Assembly and Test]], [[OSAT Value Investing Framework]] --- #investing #semiconductors