Advanced Semiconductor Engineering (ASE) has issued a statement expressing its opposition to Siliconware Precision Industries' (SPIL) share-swap deal with Foxconn Electronics (Hon Hai Precision Industry).

"We believe that SPIL's proposed issuance of new shares to facilitate the share exchange with Hon Hai would be dilutive for SPIL's existing shareholders," ASE said. "As we will not be able to exercise our voting right at SPIL's extraordinary shareholders' meeting scheduled on October 15, 2015, we would like to express to (SPIL) chairman (Bough) Lin our strong objection against the Hon Hai deal."

ASE also reiterated it will not intervene in SPIL's operations. ASE has just announced the company has purchased 25% shares of SPIL, making it the largest shareholder.

In response, SPIL said the company expects its shareholders to support the proposed deal with Foxconn. The two companies plan to form a strategic partnership through share swaps.

If SPIL receives shareholders' approval for partnering with Foxconn and exchanging shares, Foxconn will be able to hold 840.6 million SPIL shares, accounting for a 21.24% stake in the company.