Taiwan's ASE Technology, the world's biggest chip packaging and testing company, just posted its best month ever, and the reason is AI.

• August sales jumped past NT$80 billion for the first time, up 46% from a year earlier.
• The driver is booming demand for advanced chip packaging, the step that stitches AI chips together.
• Profit margins on the packaging and testing business are climbing too, and are expected to keep rising into the fourth quarter.
• Sales from the advanced packaging line will beat the company's own earlier forecast this year, and management expects that business to double next year.
• Sales for the first eight months are up 28% from last year, also a record.

Outlook: Fourth-quarter sales should keep setting records as AI chip orders stay strong, with the advanced packaging business on track to double in 2027.