Following this equity swap, Hon Hai will hold a 21.24% stake in SPIL while SPIL will continue to own 2.20% equity in Hon Hai.

Both parties stated that in the future they will collaborate in coordination on technology and operations, and for the sake of issuing new trading shares, a board of directors meeting was convened to immediately approve the transaction.

SPIL stated that each company will issue new stocks and commence exchanges; however, they denied that this is related to their acquisition by ASE.

SPIL Chairman and Director Bough Lin personally attended the press conference, and regarding today’s major news said, “Today we will not discuss ASE.”

In fact, Foxconn chairman Terry Gou and Bough Lin have deep profound friendship., knew each other for nearly 20 years. Foxconn and SPIL also have long history of partnership. Foxconn used to be shareholders and supervisors of SPIL's subsidiary.

This time, Foxconn willing to stand up for SPIL publicly by forming a quick strategic alliance to become the largest shareholder of SPIL, which will affect ASE to acquire 25% stake in SPIL.