ASE and TDK to Establish ASE Embedded Electronics Inc. to Make Embedded Substrates

Advanced Semiconductor Engineering, Inc. (“ASE”) and TDK Corporation entered into an agreement on September 4, 2015 to establish a joint venture company, ASE Embedded Electronics Inc., located in the Nantze Export Processing Zone, Kaohsiung City. 

According to the Export Processing Zone Administration, MOEA, in their supply chain partnership, ASE and TDK ally to incorporate a new entity to manufacture and sell IC embedded substrates.  The newly created entity is scheduled to begin operation in August 2016.

The two companies’ alliance is to meet the anticipated demand for smartphones and wearable devices and focus on the development of IC high density, multifunction, and miniaturization.  With the SESUB technology (semiconductor embedded substrate), the high-end IC dice can be embedded into the substrates to largely decrease the size of system in packaging and enable the alignment of many IC dice in the substrates to enhance the density of packaging.

In addition, TDK agrees to transfer its SESUB technology to the joint venture under the agreement and further to combine ASE’s resources to market the products of the new company.  Also, the new company will make use of ASE’s and TDK’s customer base, good management ability, and the ample capital and leading manufacturing technology to effectively integrate resources and strengthen technology to penetrate the embedded substrate market.  (September 2015)
/CCS