While the recent news that Taiwan Semiconductor Manufacturing Company (TSMC) is mulling an upward revision in 2012 capex has boosted market observers' confidence in the outlook for the 2012 semiconductor industry, IC packagers Advanced Semiconductor Engineering (ASE) and Siliconware Precision Industries (SPIL), however, stick to their conservative spending plans for the year.

Neither ASE nor SPIL thinks that TSMC's move to spend more on building new capacity for advanced 28nm processes will have significant short-term effects on their business plans for 2012.

ASE revealed that orders placed by TSMC now account for almost one-third of its revenues, with those for 28nm designs still contributing insignificantly to ASE's sales performance.

Plans to raise capex are definitely a good sign for company operations, ASE stated. TSMC's potential expansion may signal the foundry sector's move towards more advanced process, but does not necessarily mean that total demand in the overall semiconductor market, ASE said. It remains to be seen whether it means business opportunities for downstream players in the supply chain, ASE added.

ASE holds the guidance given previously, while observing no significant changes in customer demand, the firm said. ASE expects its core IC assembly test and material (ATM) business to post a shipment decrease of 6-9% sequentially in the first quarter of 2012 with flat ASPs. Shipments for the second quarter are likely to return to a growth track.

ASE is also sticking to its capex plan of US$700-750 million for 2012.

SPIL echoed ASE's statement saying that TSMC's potential capex increase should have little effect on its capex plan this year, and SPIL is still holding the outlook provided in mid-February.

SPIL chairman Bough Lin remarked previously that the semiconductor market would hit bottom in the first quarter of 2012, and likely start recovering in the second quarter. The firm estimated that consolidated revenues for the first quarter would decrease 3-7% sequentially.

SPIL has set aside a capex budget of NT$10.5 billion for 2012.