VERTICAL INTEGRATION:A SPIL-Hon Hai partnership has the potential to create an international powerhouse business, rivaling technology manufacturer ASE, analysts said

Taipei Times
Date:  Aug 31, 2015
By: Lisa Wang  /  Staff reporter

Siliconware Precision Industry Co’s (SPIL, 矽品精密) plans to partner with Hon Hai Precision Industry Co (鴻海精密) is expected to defend SPIL against as a hostile takeover bid from rival Advanced Semiconductor Engineering Inc (ASE, 日月光半導體), analysts said.

The two companies’ strategic alliance would expand SPIL’s presence in the fast-growing system-in-a-package (SiP) business, a potential threat to ASE’s touch controller SiP module and camera SiP module businesses, they said.

“We see this equity swap as a powerful move for SPIL as a way to defend its operation and cope with a potential hostile takeover bid,” Daiwa Capital Markets analyst Rick Hsu (徐稦成) said on Friday.     [FULL  STORY]