Business Context and Reporting Period
This Form 6-K filing by Advanced Semiconductor Engineering, Inc. (ASE) is dated June 2, 2004. ASE is the world's largest independent provider of semiconductor packaging and testing services, with a global presence in Taiwan, Korea, Hong Kong, Singapore, Malaysia, and the United States. The filing reports the completion of a strategic acquisition in Japan.
Key Financial Metrics
The filing does not provide consolidated revenue, profit, cash flow, margins, debt, or liquidity figures for the reporting period. The only specific financial metric disclosed is a revenue projection for the newly acquired entity.
- Projected Revenue (New Entity): The acquired Takahata operation (ASE Japan Co., Ltd.) is expected to generate US$165 million in revenue over the next twelve months.
Material Changes
The primary material event is the completion of the acquisition of the packaging and testing operation in Takahata, Yamagata, from NEC Electronics Corporation. This transaction, originally announced on February 3, 2004, marks ASE's strategic entry into the Japanese market. Additionally, ASE and NEC Electronics signed a four-year service agreement under which ASE will provide IC backend manufacturing services to NEC Electronics.
Guidance, Outlook, and Risks
Outlook: Management anticipates the new Japanese facility will contribute US$165 million in annualized revenue. The company continues to serve a customer base of over 200 leading semiconductor firms.
Risks and Contingencies: The filing includes a Safe Harbor Notice regarding forward-looking statements. Key risks identified include:
- Cyclicality and market conditions in the semiconductor industry.
- Highly competitive industry environment.
- Challenges in integrating mergers and acquisitions.
- Fluctuations in foreign currency exchange rates.
- Disruptions from natural disasters or industrial accidents.
- General economic and political conditions.
Investor Verification Checklist
- Verify the integration progress and actual revenue contribution of the NEC Takahata facility against the US$165 million projection.
- Review the terms and financial impact of the four-year service agreement with NEC Electronics.
- Monitor the competitive landscape in Japan and the broader semiconductor packaging market.
- Assess exposure to foreign currency fluctuations, particularly regarding the Japanese Yen.
- Check subsequent filings for updates on the company's ability to introduce new packaging and testing technologies.