Menu
Plans for ASE chip company takeover

Plans for ASE chip company takeover

A private equity group may offer to buy the world's largest chip assembly company, Taiwan's Advanced Semiconductor Engineering (ASE). The move follows a wave of big deals in the chip sector.

The Carlyle Group is leading a consortium of investors offering around US$5.5 billion to buy up all outstanding shares of ASE. The companies say an indication of interest has been made for ASE, including financial terms, but that a formal offer won't be put forth until talks are finished. They gave no time frame for the deal.

If concluded, it would be the latest in a string of such deals in the chip industry. A few months ago, the Carlyle Group was part of a group that sealed a deal to buy Freescale Semiconductor for US$17.6 billion, while Koninklijke Philips Electronics NV sold a majority in its chip unit to another group for around US$10.6 billion.

In addition, microprocessor giant Advanced Micro Devices bought graphics chip maker ATI Technologies earlier this year, while Nvidia says it plans to purchase digital music chip maker PortalPlayer.

Analysts speculate that chip fever isn't over, either. Chip foundry giant United Micro-electronics could be the next buy-out target, according to investment researcher CLSA Asia-Pacific Markets.

For users, these deals may ultimately result in higher-quality products. When Philips sold off its chip unit, executives said the move would free the division to innovate by removing headaches such as the pressure to meet quarterly earnings projections.


Follow Us

Join the newsletter!

Error: Please check your email address.

Tags philipsnvidiaASE

Featured

Slideshows

Kiwi channel closes 2017 with After Hours

Kiwi channel closes 2017 with After Hours

The channel in New Zealand came together to celebrate the close of 2017, as the final After Hours played out in front of a bumper Auckland crowd.

Kiwi channel closes 2017 with After Hours
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP honoured leading partners across the channel at the Partner Awards 2017 in New Zealand, recognising excellence across the entire print and personal systems portfolio.

Meet the top performing HP partners in NZ
Tech industry comes together as Lexel celebrates turning 30

Tech industry comes together as Lexel celebrates turning 30

Leading figures within the technology industry across New Zealand came together to celebrate 30 years of success for Lexel Systems, at a milestone birthday occasion at St Matthews in the City.​

Tech industry comes together as Lexel celebrates turning 30
Show Comments