Foxconn and SPIL are cooperating with a share swap in which 1 share of Foxconn equity trades for 2.34 shares of SPIL equity. After the cooperation, Foxconn possesses 21.24% equity in SPIL, while SPIL possesses 2.2% equity in Foxconn.

Terry Guo stated that precision packaging is the current industry trend and an indispensable technology for smart phone development. This is especially true of the current subsystem packaging in a single package, and vertical integration is also growing in importance. He also emphasized that the collaboration between Foxconn and SPIL is for long-term strategic considerations, and integrating assembly with packaging and testing will make for greater future growth in the industry.

“The value of SPIL and Foxconn’s cooperation is analogous to one plus one being greater than five,” said Terry Guo.

Foxconn’s packaging and testing plant ShuSin’s General Director Xu Wen-yi also attended the press conference and pointed out that cell phones currently have modules, such as fingerprint recognition, power amplifiers, micro-electromechanical systems (MEMS), and low noise amplifiers. In the future, subsystem packaging will be SPIL and Foxconn’s main collaboration project.

As for ASE’s plan to acquire SPIL, Terry Guo believes that a merger between the biggest and third biggest companies will not be attractive to the market or clients; furthermore, the two companies’ business overlaps by more than 85%.

(TR/Phil Sweeney)