Wed, Dec 16, 2015 - Page 13 News List

SPIL workers call on ASE to keep employees, benefits

By Lisa Wang  /  Staff reporter

Siliconware Precision Industries Co Ltd (SPIL, 矽品精密) employees yesterday urged Advanced Semiconductor Engineering Inc (ASE, 日月光半導體) to offer a five-year guarantee on the retention of jobs and employee benefits.

The requests came after ASE proposed a full acquisition of SPIL by buying the remaining 75 percent stake of the company in a deal worth about NT$128 billion (US$3.88 billion), which aims to fend off an investment proposal from China’s Tsinghua Unigroup Ltd (清華紫光). ASE holds a 25 percent stake in SPIL.

“SPIL employees are fretting over their jobs following ASE’s outright acquisition bid, which is contrary to ASE chairman Jason Chang’s (張虔生) claim that ASE would be purely an equity investor in SPIL,” SPIL Self-help Association members said in a statement released yesterday.

The association represents 4,000 SPIL employees. SPIL is the world’s No. 3 chip tester and packager, with a market share of 10 percent, while ASE is the industry leader, with a 19 percent share.

The association requested that ASE not lay off any workers or lower employee wages, and that it maintain full employee benefits, the statement said.

In addition, the association requested that SPIL’s current rules, which allocate 10 percent of the company’s profits to employee bonuses and annual 5 percent wage increases, be honored.

If ASE’s management does not positively respond to the requests, SPIL employees will strongly suggest that relevant government agencies, including the Ministry of Labor, the Financial Supervisory Commission and the Industrial Development Bureau, not give the go-ahead to the takeover bid, the association said.

Market researcher TrendForce Corp (集邦科技) yesterday said it is highly likely that ASE will successfully acquire all SPIL shares. Even if SPIL’s management rejects ASE’s proposal, ASE is likely to make a tender offer to SPIL investors to buy shares, similar to its earlier acquisition.

SPIL’s board members only own a total of 3.98 percent of the firm and are unable to counter ASE’s buyout efforts, TrendForce said in a report.

Meanwhile, Tsinghua Unigroup is expected to face growing difficulties to win government approval to buy a stake in SPIL, as legislators have requested that the Investment Commission come up with a new assessment on the potential impact of Chinese investors in the local chip industry.

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