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ASE-TDK joint venture to begin operations in 2016

ASE-TDK joint venture to begin operations in 2016

Taipei, Sept. 5 (CNA) A joint venture established by Taiwan's Advanced Semiconductor Engineering Inc. (ASE,???) and Japan's TDK Corp. is scheduled to begin operations in August 2016, according to the Ministry of Economic Affairs (MOEA). The joint venture will be located in the Nantze Export Processing Zone of Kaohsiung and aims to develop semiconductor embedded substrate (SESUB) technology, which will upgrade integrated circuit packaging and testing services to meet the demand from smartphone and wearable device makers, the MOEA said. ASE is the world's largest IC packaging and testing services provider, while TDK, a Japanese electronics giant, is engaged in production and sale of magnetic application products and passive electronics components, such as ceramic capacitors, inductive devices, and high frequency wave parts. ASE Chief Operating Officer Tien Wu (???) and TDK President Takehiro Kamigama signed an agreement for the establishment of the joint venture -- ASE Embedded Electronics Inc. (?????) -- in Kaohsiung on Friday, with Vice Economics Minister Shen Jong-chin (???) and Kaohsiung Mayor Chen Chu (??) present. The new company will have a paid-in capital of US$39.49 million (US$1.2 million) and ASE will take a 51 percent stake in the joint venture with TDK to own the remaining 49 percent. Under the agreement, TDK will transfer its SESUB technology to the joint venture, while the Japanese partner will make good use of ASE's resources, including the Taiwanese firm's broad customer base to market the products the new company will roll out, the MOEA said. The ministry said that the joint venture is expected to boast a good management, ample funds and advanced technology to further penetrate the global IC market. In a statement, ASE said that such an alliance is expected to enable "ASE to strengthen its system in package (SiP) ecosystem and offer its customers a complete suite of solutions for integrating dozens of chips into smaller and thinner spaces in the advent of portable and wearable devices and the Internet of Things." The MOEA said that before the two companies inked the agreement, the Export Processing Zone Administration under the ministry had provided necessary consultation to the deal and sped the pace to review the investment project. The authorities have vowed to continue its assistance in facilitating the investment and helping the new company operate smoothly. The MOEA said that Taiwan has been very competitive in the global IC market. According to the ministry, Taiwan's contract chip business and IC packaging and testing business both rank as the largest suppliers in the world in terms of production output, while the country's IC designer industry grasps the title of the second largest in the world. The ministry said that the cooperation between ASE and TDK is expected to further improve Taiwan's standing in the world's semiconductor industry. (By Jalen Chung, Chang Che-fon and Frances Huang)


Updated : 2021-09-25 04:51 GMT+08:00