Semiconductor assembly and test house Advanced Semiconductor Engineering Inc. (ASE) plans to take a 25% stake in competitor Siliconware Precision Industries Co. (SPIL).
Under the deal, ASE will spend $1.1 billion for the stake in order to help build cooperation between the two companies despite being direct competitors.
The move continues to be a trend in the semiconductor and manufacturing industry where consolidation has become a trend with billion-dollar deals under way. In the outsourced semiconductor assembly and test market, consolidation also has been a key theme.
Consolidation is happening as a result of the pressure Taiwan electronics vendors are coming under due to global competition and weaker economic growth. In fact, Pure-play foundry firm Taiwan Semiconductor Manufacturing Corp. (TSMC) says it may post a revenue decline for the first time in nearly four years.
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