03.09.2001
ASE facing new arrivals and new challenges

• As part of its regional expansion strategy, the world's top semiconductor assembler, Amkor (US), is to acquire a stake in two local second-tier IC packagers, Taiwan Semiconductor Technology Corp. (unlisted) and Sampo Semiconductor Corp. (unlisted). The deals will be finalized in April.

• Amkor's move is primarily motivated by ASE's (2311 'Ri Yue Guang') increasing catch of market share, which rose to 30% from 27% in 1999-2000. Meanwhile, Amkor has seen its slice of the market drop to 37% from 41%.

• ASE has been negatively affected by the slowdown in the semiconductor industry starting in 4Q00, with utilization falling to 70% in 1Q01. We believe sustaining revenue growth and profitability in 2001 given Amkor's growing presence in Taiwan will be an added challenge for ASE.

AngelLo@Primasia.com +886-[0]2-2547-8865