ASE Industrial Holding, the soon to-be-established parent holding company of Advanced Semiconductor Engineering (ASE) and Siliconware Precision Industries (SPIL), will take as much as 90% of the overall OSAT industry profits, according to Jason Chang, who has been elected chairman of ASE Industrial.
ASE Industrial, which will own both ASE and SPIL, will become the world's largest OSAT provider, said Chang.
ASE has enjoyed robust orders and seen its production lines run at full capacity utilization rates, Chang indicated. After merging with SPIL under ASE Industrial, ASE will still be allowed to operate independently and service its own customers.
As ASE and SPILL will keep their legal entities and retain their existing operation models under their parent group, the companies have no concern about orders shifted away, Chang noted.
SPIL chairman Bough Lin was quoted in a February interview with Digitimes as saying that the spirit of the contract reached between the company and ASE is that they will not share their businesses or team up to service the same customers as they run their businesses individually. Such model should remain for at least two years, Lin said.
ASE is reportedly a major SiP backend provider for Apple. The company is also among the major backend houses engaged in the cryptocurrency mining ASIC field, according to industry sources.
SPIL is a main backend service provider of mobile SoC vendors, such as MediaTek and HiSilicon, the sources said.
ASE Industrial is scheduled to start trading on TWSE mainboard on April 30, when shares of ASE and SPIL will be delisted. The final date for trading both companies' shares on TWSE is set on April 17, the company disclosed previously.
ASE's and SPIL's ADRs listed on Nasdaq will also stop trading after April 18 paving the way for the listing of ASE Industrial, according to the companies.