Two World's Largest Semiconductor Packaging And Testing Plant In A Joint Venture In Suzhou

The world's largest semiconductor packaging andShanghai, Zhangjiang and the Kunshan in Jiangsu
testing Advanced Semiconductor EngineeringProvince are equipped production base. The
(ASE, TAIEX: 2311, NYSE: ASX) and NXPworld's largest packaging and testing companies
(founded by Philips, the independentare Taiwan's Advanced Semiconductor Engineering
semiconductor company) announced today thatGroup, plans to industries in the mainland A-share
for the external release early in February thismarket in the listed. Such as market success, this
year Package testing joint venture, the two sideswill be the first mainland-listed Taiwanese
co-operation has been completed, a joint ventureelectronics companies.
assembly and test plant in Suzhou, called the new   ASE Group, to 60 million U.S. dollars last year
moon and the semiconductor.acquired the mainland technology IC packaging and
Sun and Moon is located in southern Newtesting plant Wei Yu, the current group is
Semiconductor Suzhou Industrial Park, the rapidpreparing for Wei Yu in Shanghai A shares listed
development of its strategic location foron the matters. ASE Group recently to Taiwan's
semiconductor IC packaging and testing the"Ministry of Economic Affairs Investment
market and global semiconductor markets. ASECommission" to apply for Shanghai Wei Yu was
has the 60% stake in the joint venture, while NXPrenamed "test letters ASE Test (Shanghai)."
holds another 40% stake; its board of directorsASE cause major investments in mainland China,
composed of executives from both sides. Theincluding Advanced Semiconductor Engineering
new moon was originally committed to mobile(Shanghai), high-tech ASE (Shanghai), Advanced
communications semiconductor business, theSemiconductor Engineering (Kunshan), ASE
future is expected to expand into other areas. InElectronic Components (Shanghai), and Wei Yu
order to meet consumer demand, sun and moontechnology. Message that will be present ASE ASE
will provide a wide range of new semiconductorShanghai factory to the command center, with
packaging services, such as LPC QFN package,Wei Yu and high-tech Shanghai factory, as a
LFBGA, SO, TSSOP and other packaging servicesgroup in the mainland's three packaging and
to meet the mobile application.testing production centers.
Chief Operating Officer, ASE Group, said Dr. TienReported that the ASE plans to plant in Shanghai,
Wu: "We are very pleased to see cooperationWei Yu technology and its real estate listing.
with NXP's IC packaging and testing plant hasASE Shanghai plant and Wei-Yu current number
been set up ready to go, sun, moon and the newof employees 1800 and 2000, respectively, of
combination of ASE in the semiconductorwhich Shanghai Plant is one of about 20 million U.S.
assembly and test expertise and NXPdollars on revenues of this year turnover is
semiconductor field technical expertise andexpected to more than 200 million U.S. dollars
innovative technology. We will work together formark, profitability two challenges, 30 million U.S.
the entire semiconductor industry to createdollars ; Wei Yu current monthly revenue of about
significant value chain to help customers optimize15 million to 18 million U.S. dollars, revenue goal this
their packaging and testing technology to shortenyear is expected to more than 200 million U.S.
their product time to market and to ensure thatdollars, next year's operating income is expected
customers receive high-quality performanceto 300 million U.S. dollars. After the acquisition of
products. "Wei Yu, ASE Group, the total amount of
NXP Semiconductors executive vice president andinvestment in the mainland reached 260 million U.S.
chief manufacturing officer Ajit Manocha, said:dollars.
"We are delighted that the success of thisTaiwan Business Bank A-share listed one after
partnership, the new joint venture will play ouranother
expertise and technical knowledge, and withThe end of 2003, from Taiwan, Guoxiang
excellent partners for domestic and even GlobalRefrigeration Industry Co., Ltd., to "Guoxiang
semiconductor market to optimize the value ofshares" the name listed on the Shanghai Stock
customers. The partnership also demonstratesExchange. Guoxiang stake is the establishment of
NXP's IC packaging and testing in the field ofthe Shanghai Stock Exchange 13 years ago, the
asset light strategy for the implementation of thefirst public offerings (IPO) in the A share market
advanced concepts, its value reflected in the costin the Taiwan-funded enterprises. Since then,
and quality no doubt. "Guoxiang A shares listed on the Taiwan-funded
Sun and Moon will now use the newenterprises to enter the capital market opens a
Semiconductor NXP Semiconductors in Suzhou,window.
both the packaging and testing equipment,Subsequently, the Taiwan-funded enterprises of
production, future demand for equipment toBranding in 2005 are listed on the Shenzhen SME
expand the market. For the sun and the moon inboard, which is the second to go to A-share
terms of new semiconductor, Suzhou Industrialmarket of Taiwan-funded enterprises, is also the
Park is an excellent plant locations, it not only hasfirst listed company in Taiwan in the mainland
a very advanced and conducive businessA-share listed subsidiaries . Since then, Shenzhen,
environment infrastructure, while enabling the newChina Securities Regulatory Commission has
company closer to customers and markets.accepted the letter after another Long, Jin billion
ASE Group is the world's leading semiconductorindustry, Han Chung Seiki and CIMIC, in the
packaging and testing industry, in Songjiang,mainland A share listing.