IC packagers Advanced Semiconductor Engineering (ASE) and Siliconware Precision Industries (SPIL) reported 2011 consolidated revenues that represented an on-year decrease of 1.8% and 3.8% respectively. The price increase of gold is one of the key reasons for the falling revenues.

ASE reported 2011 consolidated revenues of NT$285 billion (US$9.7billion). Gross margin was 18.89%. SPIL reported 2011 revenues of NT$61.237 billion with gross margin reported at 15.5%, flat comparing to 2010.

The economic downturn of the semiconductor market is one of the reasons why the two firms saw falling 2011 revenues, said industry sources. In addition, the price of gold increased to US$1,519/ounce from US$1,182/ounce in 2011, an increase of 28.51%. This price hike put pressure on production costs for ASE and SPIL.

Both firms expect a better financial performances in the second-quarter 2012 due to more working days and returning orders due to low inventory levels.