Advanced Semiconductor to Spend $6B in China
Advanced Semiconductor Engineering Inc. (2311), a Taiwanese provider of chip-testing services for customers including Sony Corp. (6758) and Toshiba Corp., said it plans to spend more than $6 billion in Shanghai to add capacity.
The investment, to be made over eight to 10 years, includes spending on a $2 billion site in Shanghai’s Pudong district that Advanced Semiconductor plans to open next year, the Kaohsiung, Taiwan-based company said in a statement today. It expects to generate $8.5 billion in annual revenue and employ 50,000 people in the Chinese city when the investment is completed, the company said.
Advanced Semiconductor is boosting production and research facilities to compete for chip-testing and assembly orders with rivals including Amkor Technology Inc. (AMKR) Taiwan Semiconductor Manufacturing Co., the world’s biggest contract chipmaker, also plans to expand in the semiconductor assembly market to diversify.
Net income in the second quarter fell 21 percent to NT$3.64 billion ($122 million) from a year earlier, Advanced Semiconductor reported last month.
--Mark Lee, Bonnie Cao, Adela Lin. Editors: Subramaniam Sharma, Garry Smith
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