Tsinghua Unigroup has agreed to buy a 30% stake in Suzhou ASEN Semiconductors, which is wholly owned by ASE Technology Holding, according to the Taiwan-based IC assembly and test services company.

ASE Technology will sell 30% of Suzhou ASEN to Tsinghua Unigroup for about US$95.34 million, and expects to complete the deal in 10 days. Suzhou ASEN will remain a subsidiary of ASE Technology which will own 70% of the Suzhou firm after the deal.

Proceeds from the sale of Suzhou ASEN shares will be used for ASE Technology's working capital and investment in Taiwan, according to ASE Technology.

Suzhou ASEN was founded in 2007 as a joint venture between Advanced Semiconductor Engineering and NXP Semiconductors. In March 2018, Suzhou ASEN became a wholly-owned subsidiary of ASE after ASE took over NXP's entire stake in the JV.

ASE completed its merger with Siliconware Precision Industries (SPIL) at the end of April, with ASE Technology being formed as the parent company of the two IC backend firms.