Taipei, Taiwan, February 18, 2016- The Taiwan Fair Trade Commission ('FTC') is currently reviewing the antitrust filing in connection with the offer by Advanced Semiconductor Engineering, Inc. ('ASE') to purchase up to 770,000,000 common shares of Siliconware Precision Industries Co., Ltd. ('SPIL') (the 'Acquisition'). ASE originally did not wish to issue a public statement, so that the FTC can fairly and objectively review this Acquisition based on the high-tech industry and competition policies required by our country. However, as recent remarks by SPIL and certain other third parties are contrary to facts, ASE, in order to avoid creating confusion to the public and prevent harm to the interest of investors, hereby clarifies and explains the relevant facts as follows:

Q: After the Acquisition, will ASE have market power to engage in harmful actions that limit competition for Taiwanese material suppliers?
A:
1. As a general principle, the raw materials for packaging and testing businesses must be procured from suppliers certified by clients, and semiconductor companies cannot change suppliers unilaterally. Unlike other players in the electronics industry, in order to ensure the quality and yield of their commissioned wafers, semiconductor companies have strict certification rules for all raw material resources and process conditions. Therefore, as a general principle, the raw materials for packaging and testing companies can only be procured from suppliers certified by clients. Take ASE's procurement of substrate (one of the main raw materials of packaging and testing) as an example - currently, about 80% of substrate materials are procured from suppliers designated by clients, and any change in procurement conditions is required to be approved by clients. Therefore, in the overall supply chain of the semiconductor industry, clients (IC design companies or IDMs) are the ones who truly decide the main raw material suppliers.
2. The integrated research and development of Taiwanese new packaging and testing technologies and the need for mass production are closely related to the future development of Taiwanese local material suppliers. If ASE successfully seizes the market opportunities of new packaging and testing technologies (e.g., SiP) after the Acquisition, it is expected to significantly enhance the output value of Taiwanese local material and equipment suppliers and the research and development capabilities of new packaging and testing related businesses, thereby promoting the upgrade of relevant industries and the creation of more business opportunities and jobs for Taiwanese local material suppliers. In contrast, if the Acquisition fails and competitiveness is reduced, operations will shrink and purchases for raw material suppliers will decrease dramatically.
Q: SPIL's current market cap is over one hundred million New Taiwan Dollars. Will the delisting of SPIL result in adverse effects on the vitality of the Taiwan stock market, capital market, output value and tax?
A:
After SPIL is delisted, SPIL's company structure and existing business will survive. Therefore, the delisting of SPIL will not cause any adverse effects on output value and tax. In contrast, the synergy resulting from the Acquisition will dramatically improve the overall market value of the post-Acquisition company and benefit shareholder interests, while at the same time benefiting the vitality of the Taiwan stock market and development of the capital market.
Q: Will the result of MOFCOM's review in Mainland China affect the outcome of this Acquisition?
A:
1. The result of MOFCOM's anti-monopoly review in Mainland China is not a condition for the tender offer of SPIL shares by ASE. Conditions for the current ASE tender offer of common shares of SPIL are: (1) the final number of common shares of SPIL effectively tendered reaches 155,818,056 shares (not including SPIL common shares represented by ADSs; approx. 5% of the total number of issued and outstanding shares of SPIL on the filing date); and (2) the TFTC does not prohibit the Acquisition during the tender offer period.
2. ASE has submitted filings to MOFCOM in accordance with the law. This case is currently being reviewed by MOFCOM in accordance with the law. ASE is patiently waiting for the result of MOFCOM's review of this case. Furthermore, according to relevant public information and the professional opinion of our PRC counsel, MOFOM has not yet, to date, requested that two post-merger companies unwind their merger.
Q: What is the result for ASE's antitrust filings in Germany and South Korea?
A:
Germany is the largest economy in Europe. The German FCO, a sophisticated antitrust authority that has significant experience with the semiconductor industry, recently cleared the transaction without attaching conditions. The South Korean competition law authority also made the decision not to prohibit the first tender offer early last year, and no further approval is required for the second tender offer. The clearance from the German FCO and the KFTC indicates that major economies in the word recognize ASE's tender offer for SPIL shares and holds significant meaning for the Acquisition.

ASE - Advanced Semiconductor Engineering Inc. issued this content on 18 February 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 18 February 2016 07:16:45 UTC

Original Document: http://www.aseglobal.com/en/News/PressRoomDetail.aspx?ID=467