Advanced Semiconductor Engineering (ASE) and Siliconware Precision Industries (SPIL) have both announced they will enter a trading halt on May 26, pending the release of material information.

ASE and SPIL confirmed the pair are in talks about forming an industrial holding company, in response to media reports saying the two IC backend houses will make a joint announcement soon.

ASE and SPIL have agreed to set up an industrial holding company, which will apply for Nasdaq listing, according to industry sources. Meanwhile, ASE and SPIL will continue their operations and remain listed on the Taiwan Stock Exchange (TSE), the sources said.

ASE was quoted in previous reports expressing its intention to merge with SPIL and establish an industrial holding company to separately hold 100% equity interests in both companies. If ASE and SPIL agree to merge, they will become "parallel sibling companies" under the holding company.

ASE and SPIL would jointly organize the new holding company after its establishment, ASE said previously.

In October 2015, ASE completed its unsolicited tender offer to acquire a 25% stake in SPIL. ASE launched another tender offer in December aiming to grab a controlling stake, but the bid failed to obtain regulatory approval before it expired on March 17, 2016.

Nevertheless, ASE has managed to raise its stake in SPIL through open market purchases. ASE currently owns 33.29% of SPIL.