ASE Industrial holding, the parent company of Advanced Semiconductor Engineering (ASE) and Siliconware Precision Industries (SPIL), will be diversifying its offerings to satisfy growing needs for customized products and diversity, according to company COO Tien Wu.

ASE Industrial will remain focused on communication related ICs, and will continue to expand its system-in-package (SiP) business, Wu indicated. SiP will still account for less than 10% of ASE Industrial's total revenues in 2018.

Wu also expects the synergy of ASE and SPIL to make a substantial contribution to ASE Industrial performance after 2020. Despite being operated independently under ASE Industrial, ASE and SPIL facilitate coordination and exchange of information to develop new technologies, Wu said.

ASE and SPIL will both continue their R&D of new technologies, such as fan-out panel-level packaging (FOPLP) and embedded die packaging, to meet customers' more diversified needs, Wu noted.

Commenting on TSMC's enhanced packaging capability, Wu said that ASE Industrial still regards TSMC as a partner more than a competitor as their target markets do not overlap much.

TSMC introduced recently its system-on-integrated-chips (SoIC) to suggest its foray into the SiP field, which, however, will not see much progress until 2019, according to industry sources.

TSMC's packaging business will focus mainly on high-performance computing, GPU and AI chips, while ASE Industrial's target markets are more diverse to include analog chips, MEMS and automotive electronics ICs, the sources said.

In addition, ASE Industrial expects to see its revenues hit peak for 2018 in the third quarter, according to company CFO Joseph Tung.

ASE Industrial has disclosed its first monthly revenue figure after its establishment as the parent company of ASE and SPIL. Market watchers expect the entity to post revenues of nearly NT$410 billion (US$13.8 billion) for 2018.

By: DocMemory
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