ASE Holdings, a global leader in semiconductor packaging and testing, announced that its subsidiary ASE Test Limited will initiate a tender offer to acquire Advanced Microelectronic Products, Inc. (AMPI), a 6-inch wafer foundry based in Taiwan. The acquisition aims to restructure AMPI's operations and support the company's broader business overhaul.
Potential privatization and AI supply chain integration
Analysts suggest that full integration into ASE Holdings would allow AMPI to tap into group-wide resources for improved scale and efficiency. In the longer term, AMPI could be steered toward privatization as part of efforts to resolve its persistent losses.
Market speculation indicates AMPI's older fabrication tools could be retooled for compound semiconductor production or integrated into ASE's packaging operations. These efforts may align with ASE's vertical integration roadmap and help meet the rising AI-driven demand.
Financial struggles highlight restructuring necessity
In the first quarter of 2025, AMPI posted revenue of NT$268 million (US$8.31 million), marking a 14.16% sequential increase and a 24.55% year-over-year rise. However, both gross and operating margins stayed negative, with a net loss of NT$128 million, its steepest quarterly loss in nearly four years.
Weak pricing in the 6-inch power semiconductor foundry market has weighed heavily on profitability, with AMPI logging nine straight quarters of losses. By the end of the first quarter, its net asset value had fallen below zero, placing it at risk of delisting under Taiwan OTC regulations.
Tender offer strategy and timeline
The tender offer, set to run from May 15 to June 24, will see ASE Test Limited acquire AMPI shares at a total cost of NT$136 million, offering a 3.09% premium. The move is intended to overhaul AMPI's operations, support its transition strategy, and safeguard minority shareholder interests ahead of a potential delisting.
Through a greater equity stake, ASE Test aims to enhance AMPI's competitiveness and reinforce its role within ASE Holdings' vertically integrated semiconductor platform.
Article edited by Jerry Chen
