Thu, May 26, 5:10 PM
- Taiwanese chip packaging/testing firms Siliconware Precision (SPIL +10%) and ASE (ASX +18%) each closed sharply higher after announcing a merger that provides resolution to ASE's longstanding efforts to acquire Siliconware.
- ASE/Siliconware plan to create a HoldCo that will be listed in Taipei and New York, and own all of the post-merger firm's equity. The HoldCo will issue 0.5 shares for each ASE share, and NT$55/share in cash for each Siliconware share. For reference, Siliconware closed at NT$50.50/share yesterday in Taipei. ASE has already obtained a near-50% stake in Siliconware.
- To appease regulators, each company will continue operating independently under the HoldCo. ASE/Siliconware: "As parallel sibling companies under HoldCo, ASE and SPIL can, through maintaining an operating model which incentivizes healthy competition while promoting cooperation between the two companies, improve their individual operating efficiencies and economies of scale as well as research innovation achievements."
- The companies plan to execute a "Joint Share Exchange Agreement" on or before June 25. The deal's closing is subject to the completion of the agreement and regulatory approvals.
Thu, May 26, 3:00 PM
Thu, May 26, 12:45 PM
Fri, Apr. 29, 4:01 AM
Wed, Mar. 9, 1:20 PM
- The chairman of Taiwan's Fair Trade Commission says the commission probably won't reach a decision on ASE's (ASX -1.2%) bid to up its stake in chip packaging/testing peer Siliconware (SPIL -4%) to nearly 50% before March 17, the date when a tender offer window for Siliconware shares closes.
- The chairman adds the decision has been delayed in part because lawmakers have demanded the commission hold two public hearings before making a decision.
- ASE acquired a 25% stake in Siliconware last year, and launched a tender offer to buy another 24.7% in December. Siliconware, looking to fend off ASE, struck a deal to sell a 24.9% stake to China's Tsinghua Unigroup. However, Taiwanese regulators are expected to block the Tsinghua deal on national security grounds.
Fri, Jan. 29, 5:33 AM
- Advanced Semiconductor Engineering (NYSE:ASX): Q4 EPS of NT$0.60
- Revenue of NT$75.55B (-1.4% Y/Y)
Dec. 22, 2015, 1:13 PM
- A day after Siliconware (SPIL +1.7%) said it would assess rival ASE's (ASX +2.5%) NT$55/share buyout offer, ASE has unveiled a tender offer to buy Siliconware common shares (traded in Taipei) and ADS' (traded in NYC) equivalent to a 24.7% stake at a price of NT$55/share or NT$275/ADS ($8.25/ADS).
- The offer will commence on Dec. 29, and expire on Feb. 16. If successful, it will boost ASE's stake in Siliconware to 49.7%, after accounting for its prior acquisition of a 25% stake.
- ASE blasts Siliconware's recent deal to sell a 24.9% stake to China's Tsinghua Unigroup as "another highly dilutive transaction which brings no cash value to SPIL shareholders." Should Siliconware shareholders reject the deal at a Jan. 28 meeting, or should the board terminate the deal before the meeting, ASE "intends to ultimately seek to acquire 100% of the common shares and ADSs of SPIL by seeking to discharge the SPIL Board at one or more shareholders' meetings or await the expiration of the current Board's term, and elect new nominees to the SPIL Board."
- Siliconware's ADS' currently trade $0.32 below ASE's buyout offer price.
Dec. 21, 2015, 12:33 PM
- Siliconware (SPIL +2.5%) "will assess" Taiwanese chip packaging/testing peer ASE's (ASX +1.6%) latest offer for the company, an NT$55/share all-cash bid announced last week.
- Siliconware is still trading NT$4 below ASE's offer price in Taipei. In August, ASE offered NT$45/share for Siliconware, while stating it would buy up to 25% of Siliconware's shares on its own.
- Since then, Siliconware has sold large stakes to contract manufacturer Foxconn (Hon Hai Precision) and China's state-controlled Tsinghua Unigroup.
Oct. 29, 2015, 5:29 AM
- Advanced Semiconductor Engineering (NYSE:ASX): Q3 EPS of $0.11
- Revenue of NT$72.87B (+9.4% Y/Y)
Sep. 8, 2015, 3:25 PM
- The Philadelphia Semi Index (SOXX +3.9%) has risen to its highest levels since mid-August on a day the Nasdaq is posting a 2.3% gain.
- Likely helping out: Microchip (MCHP +8.4%), still often seen as an industry bellwether (though its commentary accompanying last fall's warning sparked criticism), has adjusted its FQ2 (calendar Q3) revenue and EPS guidance to $545M-$563M ($554M midpoint) and $0.60-$0.66 from a prior $$532M-$569M ($550.5M midpoint) and $0.58-$0.66. The outlook comes after many chipmakers (Microchip included) offered below-consensus calendar Q3 guidance amid an inventory correction, weak PC demand, and slowing Chinese smartphone growth.
- Microchip's core ops are said to be tracking in-line with prior expectations, and recently-acquired Micrel's above expectations. The 8.6M shares issued in the Micrel deal have been repurchased.
- Also: Various Taiwanese chipmakers and supply chain firms have reported August sales. Chip packaging/testing firms ASE (ASX +5.9%) and Siliconware (SPIL +4.1%) respectively reported sales were up 5.8% and 5.7% M/M, and up 9.5% and down 4.2% Y/Y.
- Big gainers include Microchip peers NXP (NXPI +6.8%), Freescale (FSL +5.8%), Silicon Labs (SLAB +4.4%), and Cypress (CY +4.4%). Others include Avago (AVGO +5.8%), Xilinx (XLNX +5.7%), Cavium (CAVM +5.5%), Analog Devices (ADI +6.3%), Synaptics (SYNA +5.4%), Linear (LLTC +4.6%), Cirrus Logic (CRUS +4.7%), IDT (IDTI +4.6%), Sigma Designs (SIGM +4.9%), and chip equipment maker Axcelis (ACLS +8%).
- SanDisk, ON Semi, and Silicon Motion are benefiting from upgrades/bullish coverage. Apple holds its iPhone event at 1PM ET tomorrow.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Aug. 28, 2015, 10:25 AM
- Hon Hai Precision Industry (OTC:HNHAF) agrees to buy a 21% stake in Siliconware Precision Industries (SPIL -5.2%), after fellow Taiwan-based Apple supplier Advanced Semiconductor Engineering (ASX -1.6%) said last week it wanted to buy into the company.
- The share-swap announcement comes hours after SPIL rejected ASE's hostile tender offer as too low.
- "Foxconn has become SPIL’s white knight, and makes a more logical partner because they can add growth and even lure Apple to use SPIL instead of ASE," says Vincent Chen, head of research at Yuanta Financial in Taipei.
Aug. 21, 2015, 9:23 AM
- With Advanced Semiconductor Engineering (NYSE:ASX) buying up to 25% of Siliconware Precision Industries (NASDAQ:SPIL) at a healthy premium, Seeking Alpha contributor Dane Capital Management says ChipMOS (NASDAQ:IMOS) should be very much on watch.
- Even at a sizable premium, a purchase by almost any larger competitor would be tremendously accretive, says Dane, and IMOS' huge net cash position and tremendous cash flow makes funding a deal an easy task.
- Previously from Dane Capital: ChipMOS: Oligopoly At 4x EBITDA, 8x EPS With Pending Buyback - A Holiday Gift
- SPIL +23.55% premarket to $6.40.
Aug. 21, 2015, 8:15 AM
- Advanced Semiconductor Engineering (NYSE:ASX) announces it will buy up to 25% of Siliconware Precision Industries (NASDAQ:SPIL) for an amount likely exceeding T$30B ($919M).
- "In the face of intensifying global competition and the rise of new contenders, the drive for consolidation of the semiconductor industry is becoming increasingly apparent," the company said in a statement.
- ASE said it would offer T$45 per common share of SPIL and T$225 ($6.89) per ADS payable in the equivalent amount of U.S. dollars.
Jul. 30, 2015, 4:37 AM
- Advanced Semiconductor Engineering (NYSE:ASX): Q2 EPS of NT$0.43
- Revenue of NT$70.22B (+19.8% Y/Y)
Jul. 28, 2015, 9:17 AM
Jul. 24, 2015, 9:17 AM
Advanced Semiconductor Engineering, Inc. engages in the semiconductor packaging, design and production of interconnect materials, front-end engineering testing, wafer probing, and final testing services. It also provides integrated solutions for electronics manufacturing services in relation to... More
Industry: Semiconductor Equipment & Materials
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