Business Context and Reporting Period
This Form 6-K filing by Advanced Semiconductor Engineering, Inc. (ASE Technology Holding Co., Ltd.) was submitted on February 3, 2004. The report discloses a strategic partnership and acquisition agreement between ASE and NEC Electronics Corporation, a major Japanese semiconductor manufacturer.
Key Financial Metrics
The filing does not provide specific financial statements, revenue, profit, cash flow, or debt figures for the reporting period. However, it notes the following historical and projected data:
- ASE Group 2003 Revenue: $2.9 billion.
- ASE Group Workforce: Over 29,000 employees worldwide.
- Projected Revenue for Acquired Entity: The newly formed ASE Japan, Co. Ltd. is expected to generate over US$165 million annually in its first year.
Material Changes
The primary material event is the announced acquisition of NEC Electronics' IC packaging and testing operation in Takahata, Yamagata, Japan. Key details include:
- Transaction Structure: Acquisition of the Takahata plant combined with a four-year service agreement for ASE to provide backend manufacturing services to NEC Electronics.
- Completion Date: Scheduled for May 31, 2004.
- Operational Changes: The facility will be renamed ASE Japan, Co. Ltd. Jason Chang (ASE Chairman) will serve as Chairman, and Nobukatsu Manabe will serve as President.
- Strategic Intent: The deal aims to expand ASE's footprint in Japan, reduce manufacturing costs for Japanese semiconductor companies, and benchmark quality management and process technology.
Guidance, Outlook, and Risks
Management commentary highlights the partnership as a recognition of ASE's leadership in IC backend manufacturing and a platform to capture growing demand for outsourced services in Japan. The filing includes a Safe Harbor statement regarding forward-looking statements, noting that actual results may differ due to:
- Cyclicality and market conditions in the semiconductor industry.
- Demand for outsourced testing and packaging services.
- Ability to maintain high capacity utilization relative to fixed costs.
- Industry competition.
Investor Verification Checklist
- Verify the final closing date of the acquisition (scheduled for May 31, 2004) and any potential delays.
- Confirm the purchase price and specific terms of the four-year service agreement with NEC Electronics.
- Monitor the integration progress of the Takahata plant and the realization of the projected $165 million annual revenue.
- Review the impact of this acquisition on ASE's overall capacity utilization and fixed cost structure.
- Assess the stability of the Japanese semiconductor market and NEC Electronics' future demand for backend services.