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ASE Investment Holdings Sees Global Challenges as Growth Catalysts for Semiconductor Sector

Wu Tianyu, the Chief Operating Officer of ASE Investment Holdings, stated on June 27th that despite the semiconductor market’s slower-than-anticipated recovery due to the general environment and inventory depletion in H1 2023, the global challenges present ASE with growth opportunities. He forecasted that over the next decade, the semiconductor industry would not only encounter fierce competition and challenges but would also emerge as a strategic product.

During the company’s shareholder meeting, which was chaired by Wu in the absence of Chairman Zhang Qiansheng, ASE Investment Holdings approved all propositions and decided to distribute a cash dividend of 8.8 yuan per share for the previous year’s earnings – a record high for the company since its inception. The firm’s stock price closed at 124 yuan, a 2 yuan decline.

Despite the economic instability, ASE Investment Holdings has maintained its commitment to expand its operational presence in mainland China. The Ministry of Economic Affairs’ Investment Review Committee approved a US$160 million investment (approximately NT$4.95 billion) by ASE Semiconductor, a subsidiary of ASE Investment Holdings, to acquire new shares in Hong Kong Liansheng Capital and invest in seven mainland businesses including Suzhou, Shanghai, and Kunshan.

The Investment Review Committee explained that ASE Investment Holdings, through the acquisition of new shares in Hong Kong Liansheng Holdings, now holds close to 20% of the shares and has indirectly invested in seven mainland businesses in Suzhou, Shanghai, Kunshan, Weihai, Dongguan, and Yantai.

Wu emphasised ASE Investment Holdings’ commitment to enhancing competitiveness and maintaining a leadership position in the face of challenges. He noted that while the pandemic is gradually receding, the global economic growth is slowing, causing shocks to the industry. Despite this, he noted that the semiconductor industry is an essential part of the international economy, with Taiwan playing a key role in the semiconductor supply chain.

Wu observed that the prioritisation of the semiconductor industry by several countries with their respective chip bill strategies showcases its importance. As a leading packaging and testing manufacturer, ASE will continue to play an indispensable role in the industry while pursuing operational growth and enhancing shareholder value.

Highlighting the company’s past operating performance, scale, technological leadership, and flexible business strategy, Wu contended that ASE Investment Holdings is a crucial manufacturing partner globally. He added that the company can further extend its competitive advantage through resilient pricing strategies amid market fluctuations.

Wu also stressed ASE’s commitment to R&D, particularly in advanced packaging, modules, and optoelectronic packaging technologies, to provide high-quality services to its customers while ensuring long-term stable profits and operational flexibility.

Looking ahead, Wu projected the semiconductor industry as a strategic product over the next decade, likely to be the focus of government subsidies and regulations. He stated that Taiwan’s advanced technology will contribute significantly to the century’s development and hoped for continued attention to and support for the semiconductor industry’s relevant regulations and legislation to ensure the continued success of Taiwan’s semiconductor industry.

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