ASE last week announced that for a price of NT$45 per share, it plans to purchase a 25% stake in SPIL. Because ASE had given no prior mention of a bid solicitation, SPIL last Saturday (August 22) convened an emergency upper-level management meeting and delivered a brief statement that it had a received a public bid for acquisition and would respond within seven days.

Regarding this acquisition, industry and investment organizations all have an optimistic outlook and believe that it will raise the status of Taiwan’s semiconductor packaging and testing industry.

Taiwan’s Economic Daily News quoted the opinion of a chips packing and testing industry insider who stated that ASE’s main objective is still based on business considerations and that they hope to expand their own market share and obtain greater bargaining power.

The industry insider emphasized that ASE holds a global market share of 19% and SPIL holds a 10% share. After the two companies are merged, they will hold a combined global market share of 30%, and ASE’s position as the global leader in the packaging and testing industry will be further solidified.

Furthermore, it is predicted that ASE’s purchase of shares in SPIL will speed up the process of second-tier chip packaging and testing companies’, such as Powertech Technology and ChipMOS, search for acquisition targets.

(TR/Phil Sweeney)