Driving towards market leadership in setting the industry
standard for semiconductor miniaturization in portable and wearable
consumer devices
Advanced Semiconductor Engineering, Inc. (TAIEX: 2311, NYSE:
ASX) and TDK Corporation (TSE: 6762) announced today that both
companies will enter into an agreement to establish a joint venture
company to manufacture IC embedded substrates using TDK’s SESUB®
(Semiconductor Embedded SUBstrate) technology. ASE and TDK plan to
own 51 percent and 49 percent, respectively, of the newly created
entity. The indicative name of the joint venture company will be
ASE Embedded Electronics Incorporated, and its manufacturing
facility is planned to be located in the Nantze Export Processing
Zone, Kaohsiung City, Taiwan.
Through its strengths in manufacturing excellent inductive
devices and magnetic heads for hard disk drives, TDK developed its
proprietary SESUB technology by harnessing TDK’s signature
technologies in ultrafine processing and materials. The SESUB
technology enables semiconductor chips to be thinned down to as low
as 50 μm and embedded in a four-layer plastic substrate. TDK’s
SESUB technology provides numerous advantages, such as enabling
miniaturization by reducing the mounting area on substrates and a
thinner profile by achieving a 300 μm thickness. Other advantages
include excellent thermal dissipation characteristics, which offer
greater design flexibility and inter-chip connection that enhances
EMI performance.
As a leader in System in Package (SiP) technology, ASE continues
to expand its product and service portfolio through collaboration
with key suppliers and partners. ASE SiP solutions using SESUB
technology will offer a robust embedded solution in enabling a wide
number of applications such as PMIC, sensors and RF tuners etc. The
planned joint venture business model aims to leverage on TDK’s
success in delivering SESUB technology to the market with ASE’s
capabilities in advanced packaging, test and module level solutions
for semiconductor miniaturization.
“With the anticipated need for further miniaturization and
weight reduction of smartphones and wearable devices in the future,
demand for semiconductors embedded in substrates, such as SESUBs,
is expected to increase globally,” says Mr Takehiro Kamigama, CEO
and President of TDK Corporation. “TDK has already been producing
SESUBs at its Kofu Plant, but to meet the anticipated increase in
demand, it will establish the joint company in Taiwan to add to its
production capacity with ASE, which possesses technologies
including assembly of IC packages and other items, and boasts a
world-class performance record in product testing. The joint
venture establishment will create a structure for full-scale mass
production,” added Mr Takehiro Kamigama.
“ASE serves a diverse group of customers including several major
players supplying to the portable and wearable consumer market and
is a leader in SIP integration using its advanced packaging
solutions and test expertise. TDK, on the other hand, has a proven
proprietary embedded substrate technology addressing the market
needs of integrating more chips and functions, higher performance,
lower power consumption and better heat dissipation onto a smaller
form factor,” says Dr Tien Wu, COO, ASE Group. “We see this
powerful alliance as an added value to the ASE SIP ecosystem and
together, catapulting TDK’s SESUB technology into the forefront as
an industry standard,’’ added Dr Tien Wu.
The proposed establishment of and capital injection into the
joint venture company will be subject to various regulatory
approvals or consents (including but not limited to the approvals
of the Taiwan Fair Trade Commission and Export Processing Zone
Administration).
About TDK Corporation
TDK Corporation is a leading electronics company based in Tokyo,
Japan. It was established in 1935 to commercialize ferrite, a key
material in electronic and magnetic products. TDK's portfolio
includes electronic components, modules and systems* marketed under
the product brands TDK and EPCOS, power supplies, magnetic
application products as well as energy devices, flash memory
application devices, and others. TDK focuses on demanding markets
in the areas of information and communication technology and
consumer, automotive and industrial electronics. The company has a
network of design and manufacturing locations and sales offices in
Asia, Europe, and in North and South America. In fiscal 2015, TDK
posted total sales of USD 9.0 billion and employed about 88,000
people worldwide. In Taiwan, TDK has been strengthening its
research and development activities through close cooperation with
Taiwan's industries and research institutes.
For more information about the TDK Group, visit
www.global.tdk.com
* The product portfolio includes ceramic, aluminum electrolytic
and film capacitors, ferrites, inductors, high-frequency components
such as surface acoustic wave (SAW) filter products and modules,
piezo and protection components, and sensors.
About the ASE Group
The ASE Group is the world's largest provider of independent
semiconductor manufacturing services in assembly, test, materials
and design manufacturing. As a global leader geared towards meeting
the industry’s ever growing needs for faster, smaller and higher
performance chips, the Group develops and offers a wide portfolio
of technology and solutions including IC test program design,
front-end engineering test, wafer probe, wafer bump, substrate
design and supply, wafer level package, flip chip,
system-in-package, final test and electronic manufacturing services
through Universal Scientific Industrial Co., Ltd. and its
subsidiaries, members of the ASE Group. The Group generated sales
revenues of US$8.5 billion in 2014 and employs over 68,000 people
worldwide. For more information about the ASE Group, visit
www.aseglobal.com.
Safe Harbor Notice
This press release contains "forward-looking statements" within
the meaning of Section 27A of the United States Securities Act of
1933, as amended, and Section 21E of the United States Securities
Exchange Act of 1934, as amended, including statements regarding
our future results of operations and business prospects. Although
these forward-looking statements, which may include statements
regarding our future results of operations, financial condition or
business prospects, are based on our own information and
information from other sources we believe to be reliable, you
should not place undue reliance on these forward-looking
statements, which apply only as of the date of this press release.
The words “anticipate,” “believe,” “estimate,” “expect,” “intend,”
“plan” and similar expressions, as they relate to us, are intended
to identify these forward-looking statements in this press release.
Our actual results of operations, financial condition or business
prospects may differ materially from those expressed or implied in
these forward-looking statements for a variety of reasons,
including risks associated with cyclicality and market conditions
in the semiconductor or electronic industry; changes in our
regulatory environment, including our ability to comply with new or
stricter environmental regulations and to resolve environmental
liabilities; demand for the outsourced semiconductor packaging,
testing and electronic manufacturing services we offer and for such
outsourced services generally; the highly competitive semiconductor
or manufacturing industry we are involved in; our ability to
introduce new technologies in order to remain competitive;
international business activities; our business strategy; our
future expansion plans and capital expenditures; the strained
relationship between the Republic of China and the People’s
Republic of China; general economic and political conditions; the
recent global economic crisis; possible disruptions in commercial
activities caused by natural or human-induced disasters;
fluctuations in foreign currency exchange rates; and other factors.
For a discussion of these risks and other factors, please see the
documents we file from time to time with the Securities and
Exchange Commission, including our 2014 Annual Report on Form 20-F
filed on March 18, 2015.
About the planned Joint Venture
Company
Indicative name of JVC : ASE Embedded Electronics Inc
Initial paid-in capital
: equivalent NT dollars of
US$39,490,000
ASE US$20,140,000 (51%) TDK US$19,350,000 (49%) Planned location :
Nantze Export Processing Zone, Kaohsiung City, Taiwan
TDK PR Contact:Mr. Yoichi. OSUGA, +813 6852
7102pr@jp.tdk.comorASE PR Contact:Jennifer Yuen, +65 6631
4229jennifer.yuen@aseus.com
ASE Technology (NYSE:ASX)
Historical Stock Chart
From Mar 2024 to Apr 2024
ASE Technology (NYSE:ASX)
Historical Stock Chart
From Apr 2023 to Apr 2024