On July 1, driven by strong semiconductor demand from AI applications and tight advanced packaging capacity, leading and mid-sized packaging and testing companies are operating at nearly full capacity, prompting these companies to actively expand their production capabilities. Due to increased raw material costs, rising long-term investment costs, and tight supply, it has been reported that ASE Technology Holding has once again adjusted its packaging prices, with increases exceeding 20%. The market anticipates that other packaging and testing companies will likely follow suit to reflect the current heated market conditions. In the wave of advanced packaging driven by AI, ASE Technology plays a crucial role, as TSMC's CoWoS capacity remains in high demand and the outsourcing ratio continues to rise, leading to an ongoing increase in the substrate packaging (oS) and wafer testing (CP) that the company undertakes. According to industry sources, this price increase covers advanced packaging such as CoWoS and FoCoS, including major U.S. clients, with the highest increase exceeding 20%. Regarding the pricing strategy, ASE Technology's Chief Operating Officer, Wu Tianyu, responded in a media interview after this year's shareholder meeting that price increases are a very sensitive issue and can be viewed in several parts. Firstly, it reflects the rise in raw material prices, which is necessary. Secondly, it reflects the increase in investment amounts and considerations of investment costs. Wu Tianyu added that ASE's capital expenditure has historically been around $2 billion per year, increasing to $5.3 billion last year and raised to $8.5 billion this year, with the possibility of further increases in the future, which is also part of the cost structure. As for adopting pricing strategies due to market supply and demand imbalances, this part is subjective, and the company hopes to retain some flexibility for its management team.