Business Context and Reporting Period
This Form 6-K filing by Advanced Semiconductor Engineering, Inc. (ASE) is dated December 15, 2013. The report addresses a regulatory inspection conducted on December 14, 2013, at the company's Chungli No.1 packaging/testing site in Taoyuan, Taiwan, by the Taoyuan County Environmental Protection Bureau.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity for the reporting period. The only financial figure disclosed is a historical investment of approximately NT$1 billion by the Chungli branch in pollution control and wastewater treatment facilities over recent years.
Material Changes and Operational Events
- Regulatory Inspection: Inspectors identified pipes connecting a wastewater collection system to a sedimentation tank, potentially violating Article 18 of the ROC Water Pollution Control Act regarding untreated discharge.
- Wastewater Quality: Samples taken from the treatment facilities showed satisfactory results with no violations: temperature at 26°C (limit 35°C), pH at 8.07 (range 6-9), and zero heavy metal contaminants.
- Corrective Action: ASE immediately shut down three newly installed wafer saw machines (installed October 2013) and removed the non-compliant pipes. The company stated these improvements were completed by the December 16, 2013 deadline.
- Operational Impact: The company explicitly states that the operations of the Chungli No.1 packaging/testing site remain unaffected, as the order only required the shutdown of the specific machines in question, not the entire facility.
Management Commentary and Risks
Management attributes the violation to a lack of awareness regarding a March 2013 amendment to the Water Pollution Control Measures, which expanded the definition of "bypass of wastewater disposal" to include uncertified collecting points and processing units. The company asserts that all wastewater was ultimately discharged through certified points with monitoring systems.
The filing includes a Safe Harbor Notice regarding forward-looking statements, citing risks such as semiconductor industry cyclicality, competitive pressures, integration of mergers and acquisitions, geopolitical tensions between the Republic of China and the People's Republic of China, and foreign currency fluctuations.
Investor Verification Checklist
- Confirm the status of the re-examination application submitted to the Taoyuan County Environmental Protection Bureau.
- Verify that the three wafer saw machines have been fully restored to operation following the regulatory clearance.
- Review the company's internal compliance protocols to ensure staff awareness of updated environmental regulations.
- Monitor for any future penalties or fines related to the December 14 inspection findings.