Advanced Semiconductor Engineering, which already holds 25% of Siliconware Precision Industries (SPIL), has announced the failure of its tender offer for another 24.71% stake in SPIL. Nevertheless, ASE said its intention of acquiring SPIL remains unchanged, and the company will establish an industrial holding company to separately hold 100% equity interests in both ASE and SPIL.

ASE indicated that if the company receives approval from Taiwan's Fair Trade Commission (FTC) for its bid to gain a controlling stake in SPIL, "ASE expects to continue seeking the support of SPIL's shareholders in order to complete the acquisition of an 100% equity interest."

ASE reiterated it will maintain SPIL's legal entity status, legal entity name, current employee benefits, working conditions and personnel regulations, and retain the current SPIL management team and all employees to protect their employment rights if it successfully acquires a 100% stake. In order to realize the commitment, ASE will establish an industrial holding company to serve as parent company to both ASE and SPIL, ASE noted. Both ASE and SPIL will then become "parallel sibling companies" under the holding company.

"The newly established industrial holding company can be expected to strengthen resource consolidation in Taiwan's current semiconductor packaging and testing, and related industries, and become a new innovation platform for the industry," ASE said.

ASE further noted the company will invite SPIL chairman Bough Lin and president CW Tsai to join the board of the industrial holding company and jointly manage the company with ASE's management team. ASE also expects Lin and Tsai to continue serving as chairman and president of SPIL and lead the current SPIL management team after ASE successfully completes its acquisition.