ASE, the world's largest packaging and testing company , have 20% of global market share , important suppliers of Apple and China white-box handset and tablet.

The suspected contaminated K7 plant is responsible for Flip Chip Packaging and Bumping, all applications processor, Networks Chip, RF Chip, GPU, etc., are required to go through this processes.

ASE said that customers were quite concerned about the possible shutdown in K7 plant, ASE will do all effort to explain and propose improvement plans, and communicate with the Kaohsiung Environmental Protection Agency. ASE may propose statement and improvement plan earlier this week to avoid being shutdown.

If the situation continued to spread, Amkor, a chip packaging company in South Korea ,may likely to get the transfer orders due to idle capacity, if they can obtain verification from ASE’s existing customers.

However ,it take three to six months to acquire the packaging and testing plant certification, if K7 plant was shutdown and ASE can’t return to work in short period, the release orders nor other company can afford , the impact level will be extended to the entire semiconductor supply chain, even the global electronics shipments.