“Packaging is really important, by the way, because if you look at it, the packaging capacity is like non-existent.”— Elon Musk, speaking with Gwynne Shotwell on All-In. ( Elon ignited the advanced packaging narrative again, and Liwei's pick ASE ($ASX) is knocking on the door of an All-Time High. (Liwei’s picks rarely disappoint 😉) I want to highlight ASE ($ASX) again for anyone who missed the initial run. Think of it as a mini-$TSM, and one of those rare names that international investors can buy directly through its ADR. The chart is printing a textbook cup-and-handle. If we get a quick handle pullback before the breakout, that’s your prime entry window—because once it clears ATH, there’s no looking back. Here are 15 concrete catalysts behind the ASE($ASX) bull case: 1. $TSM says packaging shortages are limiting customers’ growth. That supports the opportunity for ASE to absorb additional outsourced work. ( 2.TSMC and ASE co-chair Taiwan’s 3DIC manufacturing alliance, coordinating packaging processes, equipment and materials. The partnership already has an operating framework. ( 3. $AMD officially named ASE and SPIL as partners developing and qualifying wafer-based 2.5D EFB packaging for Venice server CPUs. ( 4.Taiwan’s Economic Daily News reported additional $GOOG's TPU packaging and testing orders for ASE in August. A customer catalyst beyond GPUs, pending company confirmation. ( 5.The same report described expanding Intel outsourcing tied to EMIB. ASE could benefit across competing packaging platforms. ( 6.ASE is expanding full-process advanced packaging. Taking on more manufacturing steps creates an opportunity to capture more revenue per package. 7. Management expects 2026 leading-edge packaging and testing revenue above $3.5 billion, with a target to double it in 2027. ( 8.Planned 2026 capex increased from $8.5 billion to roughly $10.5 billion, adding both facilities and equipment to support demand. ( 9. Seven factory buildings are under construction simultaneously in Kaohsiung. Capacity expansion is already underway. ( 10. ASE’s automated 310×310 mm panel-packaging platform is expected to begin production by Q1 2027, supporting FOCoS and FOCoS-Bridge. ( 11. Silicon-photonics/CPO-related production is targeted for late 2026, initially at small volumes. Another potential revenue stream is approaching commercialization. ( 12.The Renwu testing project with WinWay and HTT targets phased operations in 2027, expanding wafer and chip testing capacity. ( 13.August packaging, testing and materials revenue reached NT$51.29 billion: +53.1% YoY in Taiwan dollars and +41.4% in US dollars. ( 14.Q2 packaging, testing and materials revenue grew 36.3% YoY. Segment gross margin rose to 27.3%, from 26.0% in Q1. ( 15. Management guided Q3 segment revenue up another 11–13% sequentially in Taiwan dollars, with gross margin improving to 28–29%. ( The $ASX bull case: capture more packaging and testing work per AI system, then convert new capacity into profitable revenue. The company that finishes the chip when TSMC’s advanced-packaging lines are full, when $AMD needs EFB, when $GOOGL / $INTC need a second packaging path, and when test times keep getting longer. That’s why the multiple re-rated. That’s also why a pullback into strength is more interesting than chasing the first tick through $45.52. Also, the legendary @PhotonCap has been pounding the table on advanced packaging lately. Make sure to check out and subscribe to his Substack: