Advanced Semiconductor Engineering Inc (ASE, 日月光半導體), the world’s largest chip tester and packager, yesterday said it had submitted a NT$128.7 billion (US$4.1 billion) bid to take over Siliconware Precision Industry Co (SPIL, 矽品精密) to Chinese and US competition watchdogs to proceed with the planned merger.
That brings the merger one step closer after the takeover bid was filed with the local competition agency about two months ago.
ASE has applied to the competition agencies in the US and China to form a holding company with SPIL, ASE chief operating officer Tien Wu (吳田玉) told reporters on the sidelines of a news conference at an annual semiconductor show in Taipei.
ASE has also made some progress in Taiwan. The company is to submit additional documents to the Fair Trade Commission as requested to assuage its concerns about the deal, Wu said.
ASE hopes the commission would then start the review process, he said.
The company submitted its friendly takeover bid to the commission in July after the boards of ASE and SPIL in May agreed to form a holding company by the end of next year.
ASE Industrial Holding Co Ltd (日月光投資控股) is to own 100 percent of ASE and SPIL, while both firms would remain separate legal entities.
Commenting on ASE’s outlook, Wu said it is almost certain that the company’s second half would be better than the first.
In July, Wu said ASE’s revenue would grow in the second half from NT$124.97 billion in the first half.
“On the client side, mid to high-end smartphone demand is stronger than anticipated,” Wu said. “Demand in September indicates the market is quite healthy. The company will meet its third-quarter forecast.”
ASE revenue is expected to grow by about 20 percent to NT$75 billion this quarter from last quarter’s NT$62.6 billion, Daiwa Capital Markets analyst Rick Hsu (徐稦成) said.
ASE said in July that it plans to add 5 percent more capacity this quarter to solve capacity constraints that have hit the company since the first quarter.
Separately, Taiwan Semiconductor Industry Association (台灣半導體協會) director-general Nicky Lu (盧超群) yesterday said that local and overseas semiconductor heavyweights are scheduled to meet President Tsai Ing-wen (蔡英文) tomorrow to discuss the industry’s development.
Representatives from local companies include Lu, Wu, Taiwan Semiconductor Manufacturing Co (台積電) joint chief executive officer C. C. Wei (魏哲家) and MediaTek Inc (聯發科) chairman Tsai Ming-kai (蔡明介), a source said.
The companies want to address long-standing problems, such as the scant supply of electricity, water, land, and talent, as well as relaxing restrictions on Chinese investment in local chip designers, the source said.
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