Spansion(R) and ASE Sign Final Manufacturing Joint Venture MOU
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Joint Venture to Operate Spansion Suzhou Facility
SUNNYVALE, Calif. and TAIPEI, Taiwan, Oct 15, 2008 /Xinhua-PRNewswire- FirstCall via COMTEX News Network/ -- Spansion Inc. (Nasdaq: SPSN), the world's largest pure-play provider of Flash memory solutions, and Advanced Semiconductor Engineering Incorporated (ASE, TAIEX: 2311; NYSE: ASX), the world's largest semiconductor packaging and test company, today announced the signing of a Memorandum of Understanding (MOU) to establish a joint venture to jointly own the Spansion Suzhou, China final manufacturing facility. Specific terms of the non-binding MOU were not disclosed.
Today's announcement is a significant milestone in Spansion's strategy to focus on its own core competencies and establish strategic alliances with industry leaders in final manufacturing. Upon the completion of this transaction the joint venture is expected to allow management to reduce capital expenditures and increase asset utilization through greater economies of scale. Through partnerships, Spansion can focus its resources on growing its strong leadership position in the wireless and embedded market segments; further diversifying its product portfolio with innovative, next-generation Flash memory solutions; and accelerating the company's leading-edge Flash memory process technology roadmap.
"ASE is the world leader in final manufacturing services," said Bertrand Cambou, president and CEO, Spansion Inc. "Through our partnership with ASE, the Spansion Suzhou facility is expected to serve a broader customer base which should result in lower costs through greater economies of scale and increased utilization."
The joint venture complements ASE's existing product, manufacturing and growth strategy, which is focused on providing outsourced assembly and test services for a wide range of semiconductor companies. As such, this joint venture will continue to provide final manufacturing services to Spansion and will also leverage ASE's technology expertise and management resources to serve other companies in this field.
"Spansion is a premier manufacturer of Flash memory and widely recognized for driving the advancement of state-of-the-art memory technology, as well as complex packaging techniques. This joint venture will enable ASE to expand its role in the rapidly growing flash memory segment," commented Jason Chang, Chairman and CEO, ASE. "We are excited to see more and more semiconductor companies adopt the asset-light strategy, which leads to the acceleration of outsourcing demand. ASE is well prepared to capitalize on this industry trend and embrace these opportunities."
The Spansion Suzhou facility is the flagship factory in Spansion's final manufacturing network, with approximately 1100 employees. Operating in China since 1998, the Suzhou facility is certified to ISO 9001:2000 and ISO/TS 16949:2002 as well as ISO 14001 and OHSAS 18001 standards. Operations at Spansion Suzhou include: MCP package development; high-volume manufacturing of MCP, FBGA, and TSOP packages; assembly, test, mark and pack; and customer support.
The final terms of the transaction are subject to the negotiation and entry into of definitive agreements, including a multi-year service agreement. ASE and Spansion plan to complete a definitive agreement in the fourth quarter 2008, subject to the completion of necessary regulatory approvals.
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About ASE Group
The ASE Group is the world's largest provider of independent semiconductor manufacturing services in assembly and test. As a global leader geared towards meeting the industry's ever growing needs for faster, smaller and higher performance chips, the Group develops and offers a wide portfolio of technology and solutions including IC test program design, front-end engineering test, wafer probe, wafer bump, substrate design and supply, wafer level package, flip chip, system-in-package and final test. ASE Group also provides electronic manufacturing services through its affiliate, Universal Scientific Industrial Co Ltd. The Group generated sales revenues of $3.1 billion in 2007 and employs over 28,000 people worldwide. For more information about the ASE Group, visit aseglobal.com .
Spansion(R), the Spansion logo, MirrorBit(R), MirrorBit(R) Eclipse(TM), ORNAND(TM), EcoRAM(TM), ORNAND2(TM), HD-SIM(TM) and combinations thereof, are trademarks of Spansion LLC in the U.S. and other countries. Other names used are for informational purposes only and may be trademarks of their respective owners.
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