Advanced Semiconductor Engineering, Siliconware Precision merger notified to Taiwan’s antitrust regulator

Author: Xu Yuan
18 Aug 16 | 04:17 GMT

IN BRIEF
The proposed merger of Taiwan’s top two integrated-circuit packaging and testing companies, Advanced Semiconductor Engineering and smaller rival Siliconware Precision Industries, has been filed to local antitrust authorities for review.

The proposed merger of Taiwan’s top two integrated-circuit packaging and testing companies, Advanced Semiconductor Engineering and smaller rival Siliconware Precision Industries, has been filed to local antitrust authorities for review.

The companies submitted the notification in late July, but the Taiwan Fair Trade Commission, or TFTC, has yet to start an official review, because it is still waiting for the companies to provide more information to supplement the notification documents, it is understood.

The TFTC has at most 90 days to make a decision on a merger. Most deals in the past have been cleared in the initial 30-day period, with only a few high-profile transactions seeing their review period extended for another 60 days.

The companies, which are also two of the largest semiconductor assembly and test-services providers in the world, announced a plan in May to merge by setting up a new holding company. The holding company will own both Advanced Semiconductor and Siliconware, which will become “parallel sibling companies" after the transaction is completed, according to a joint statement.

The merger was announced two months after a previous attempt by Advanced Semiconductor to increase its stake in Siliconware failed because the TFTC didn't manage to make a decision within the effective period of the buyer's offer.

By the time the regulator dropped the review, which was then in the extended period, it had not been able to make a decision because the impact of the deal on competition and the overall economy was difficult to determine due to the complexity of the deal, the TFTC said in a statement.

The transaction also requires antitrust approvals by China's Ministry of Commerce and competition authorities in the US.