July 2, 2026 /SemiMedia/ — Supply chain sources said ASE Technology Holding has raised prices again for advanced packaging services, with increases exceeding 20% for some products.

The latest adjustment covers multiple advanced packaging technologies, including CoWoS and FoCoS, and also affects major U.S. customers, according to industry sources.

The price increase reflects rising material costs, higher capital expenditure and continued tightness in advanced packaging capacity as demand from AI servers, high-performance computing and accelerator chips continues to grow.

ASE management previously said price adjustments are being driven by several factors. The first is higher raw material costs, which the company views as a necessary pass-through. The second is rising capital investment, as advanced packaging capacity requires larger and longer-term spending. The third is supply-demand imbalance in high-end packaging markets.

CoWoS and FoCoS are important packaging technologies for AI chips, high-performance processors and chiplet-based designs. As GPUs, AI ASICs and HBM integration become more complex, packaging requires greater precision, larger package sizes, higher interconnect density and more capital-intensive production lines.

ASE said last month that AI-related computing demand has exceeded its previous expectations. The company is launching its largest expansion program to date and is moving forward with 15 new facility projects to support future AI advanced packaging demand.