Advanced Semiconductor Engineering's (ASE) acquisition of Siliconware Precision Industries (SPIL) will be a positive for other IC assembly and test services companies, according to a recent Chinese-language Economic Daily News (EDN) report.
Citing unspecified sources, the report said that some major customers of both ASE and SPIL are evaluating plans to shift their orders to other backend service providers due to concerns over the growing concentration in the industry.
MediaTek, for example, is likely to shift part of its orders which the company places with ASE and SPIL to China's Jiangsu Changjiang Electronics Technology (JCET), while Qualcomm might also transfer a portion of its orders originally placed with ASE and SPIL to Amkor Technologies or Powertech Technology (PTI), the report indicated.
JCET is growing fast after it acquired fourth-ranked STATS ChipPAC earlier in 2015.
Amkor is already among the backend services providers of Qualcomm. The US firm recently announced it had increased its ownership interest in J-Devices, a Japan-based OSAT company, from 65.7% to 100%.
The report also noted that HiSilicon Technologies, which places orders with SPIL and King Yuan Electronics (KYEC), might increase its orders to KYEC following ASE's acquisition of SPIL.
ASE, which previously completed its unsolicited offer for SPIL shares, has launched another tender offer to acquire more shares of SPIL which will bring its total ownership interest in the fellow packaging and testing company to almost 50%. ASE also disclosed its goal of buying the rest of SPIL shares. |