Taipei, Taiwan -- Advanced Semiconductor Engineering, Inc. (TAIEX: 2311, NYSE: ASX; the "ASE") announced that ASE will enter into a Joint Venture Agreement with TDK Corporation (TSE: 6762; the "TDK") to establish a joint venture company (the "JV Company") in Taiwan which is expected to manufacture IC embedded substrates utilizing TDK's SESUB technology. Pursuant to the Joint Venture Agreement and other supplementary agreements, the JV Company may provide part of TDK's production capacity for IC embedded substrates under certain specific circumstances.
The JV Company's indicative name is "ASE Embedded Electronics Inc." and its initial paid-in capital amount will be the equivalent in NT dollars of US$39,490,000. ASE will inject US$20,140,000 into the JV Company for 51% shareholding, and TDK will inject US$19,350,000 into the JV Company for 49% shareholding. After the JV Company obtains agreement from ASE and TDK to commence construction of its first manufacturing line, the JV Company will pay US$19,350,000 as a down payment for the royalty fees for the SESUB technology license granted by TDK. It is planned that the JV Company's factory and manufacturing facility will be located in the Nantze Export Processing Zone, Kaohsiung City, Taiwan.
The proposed establishment of and capital injection into the joint venture company is subject to various regulatory approvals or consents (including but not limited to the approvals by the Taiwan Fair Trade Commission and the 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 2014, TDK posted total sales of USD 9.6 billion and employed about 83,000 people worldwide. 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.