NXP Semiconductors And ASE Team Up To Form Joint Venture For IC Testing And Packaging In Suzhou

Eindhoven, Netherlands & Taipei, Taiwan - NXP Semiconductors, formerly Philips Semiconductors, and Advanced Semiconductor Engineering, Inc. recently announced the signing of a Memorandum of Understanding to form a joint venture (JV) in Suzhou, China focused on semiconductor testing and packaging. It is planned that NXP will hold a 40 percent share while ASE will hold the remaining 60 percent. Terms of the agreement are subject to final negotiations between NXP and ASE and the receipt of necessary approvals from regulatory authorities. No financial details will be disclosed.

The JV will serve the international and domestic Chinese markets, focusing on testing and packaging of a wide range of semiconductors in areas such as mobile communications, consumer electronics and automotive products. Since the new company will be located at NXP's existing manufacturing site in Suzhou, China, the parties expect that the JV will be able to quickly and efficiently serve customers and support the required fast time-to-market requirements necessary to compete in the high tech arena. The JV is expected to begin operations in Q2 2007. NXP will contribute its existing testing and packaging operation in Suzhou as its initial investment into the JV. This JV does not affect the other testing and packaging sites for NXP in Asia and Europe.

"We are pleased to be able to strengthen our relationship with ASE through the formation of this JV and appreciate the willingness of governments to help in this regard," said Ajit Manocha, Chief Manufacturing Officer, NXP Semiconductors. "The JV combines the expertise of both companies to provide high-quality, competitive products to address the needs of electronics manufacturers around the world."

"NXP has been a leader in semiconductors for more than 50 years, bringing a unique blend of innovative processes, manufacturing capabilities and advanced product development to the industry," said Dr. Tien Wu, Chief Operating Officer, ASE. "ASE is the world's largest independent provider of IC packaging and testing services. We look forward to working together with NXP to strengthen our leadership position and bring additional value to our customers."

SOURCE: NXP Semiconductors