Advanced Semiconductor Engine-ering Inc (日月光), the world's top chip tester and packager, said yesterday that the company has reached an insurance compensation agreement with its insurers after almost a year of negotiations.
The company said that a group of nine insurance companies agreed to pay the compensation, totalling about NT$8.068 billion (US$247.1 million), to help the company cover damage from a fire that broke out on May 1 at a plant in Jhongli (中壢), Taoyuan County of northern Taiwan, where the company packaged chips and manufactured IC substrates.
The plant accounted for an estimated 10 percent of the company's total production capacity, the company said in August last year. That fire also raised the company's total capital expenses last year by US$50 million to US$300 million, it said at the time.
The nine insurers led by Zurich Insurance (Taiwan) Ltd paid NT$2.3 billion last October as an advance compensation, the insurance company said in a statement yesterday.
Therefore, the insurers would now pay the remaining NT$5.768 billion compensation, the statement read. Other insurers include Fubon Insurance Co (富邦產險) and Cathay Century Insurance Co (國泰世紀產險).
Advanced Semiconductor said it expects to book NT$3.4 billion in compensation as income in this quarter, the company said yesterday.
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