Terry Guo stated in a media interview that Hon Hai are not white knights. Hence, their trading alliance with SPIL is based on mutual long-term cooperation and considerations of vertical integration in the industry rather than short-term financial investment.

Terry Guo also pointed out that benefits brought about by this alliance between the two parties is not one plus one is greater than three, but rather one plus one is greater than five.

Terry Guo stated that although Hon Hai lacks SPIL’s technology, they have abundant experience in setting up factories around the world. Hence the two companies are highly complimentary to one another.

He emphasized that if Hon Hai’s investment in SPIL were due to short-term considerations, they could have used cash to directly buy equity in SPIL. This method would have been a type of simple property investment; however, it would not have had much significance in advancing the enterprises’ competitiveness.

Some analysts believe that a merger between Advanced Semiconductor Engineering Inc. (ASE) and SPIL would be significant for horizontal integration in the industry and be more favorable to Taiwan’s packaging and testing industry.

Terry Guo also stated that cooperation in the industry should be done with a view towards the long-term. Therefore, sights must be set on three years in the future, five years, and even more than ten years, and shortly after people will believe that the beneficial results of the mutual cooperation are becoming more and more apparent with each passing day.

(TR/Phil Sweeney)