Siliconware Precision Industries (SPIL) has seen some of its clients shift orders to other OSAT companies, and estimated more than NT$30 billion (US$893 million) worth of orders will be affected due to a potential acquisition of it by rival Advanced Semiconductor Engineering (ASE).
International chip vendors such as Qualcomm, Broadcom and MediaTek all intend to diversify their suppliers to reduce supply risks, SPIL said. If ASE successfully takes over SPIL, the number of their backend partners will reduce to three companies from the current 4-5, SPIL indicated.
Other IC assembly and test services companies will benefit from ASE's takeover of SPIL, SPIL noted. There could be NT$30-45 billion worth of orders being shifted away, SPIL continued.
Amkor Technologies of the US and China-based Jiangsu Changjiang Electronics Technology (JCET), as well as Taiwan's Powertech Technology (PTI) are being pinpointed as the beneficiaries.
SPIL also argued that the acquisition of it by ASE will benefit only ASE's own business and interests.
ASE has reiterated its investment in SPIL "was based on our sincere belief in the need for Taiwan's semiconductor packaging and testing industry players to actively seek opportunities for cooperation and resource consolidation to maintain and further improve the competitive strength of Taiwan's semiconductor packaging and testing industry in the face of intensified global competition and emerging competitors."
ASE, which previously acquired a 25% stake in SPIL through an unsolicited tender offer, has launched another tender offer to buy more shares of SPIL which will bring its total ownership interest in the company to almost 50%. ASE also disclosed its goal is to acquire the rest of SPIL shares. |