Taipei, July 8, 2010 (CENS)--Advanced Semiconductor Engineering Inc. (ASE) saw its consolidated revenues for June and the second quarter hit new highs, with the monthly revenue representing a 4.5% increase from a month earlier to NT$11.1 billion (US$346 million at US$1:NT$32) and the quarterly revenue showing a 23.6% surge subsequently to NT$46.4 billion (US$1.4 billion).

The Taiwan`s No.1 chip assembler ascribed the hefty growth of consolidated June revenue mostly to the impressive growth at subsidiary Power ASE Technology and branch in Weihai of mainland China. In addition, robust contracts from Taiwan`s design houses specializing in analog ICs and telecommunications ICs made considerable contribution to the growth.

Industry watchers attributed the company`s growth in June and the second quarter mostly to its lead over rivals in supplying packaging and testing service based on copper process. The company already added copper-wire bonding machines to 2,300 systems in the second quarter from 1,600, drawing considerable contracts for the process.

The company`s nearest rival at home, Siliconware Precision Industry Co., Ltd., saw consolidated revenue for June slip 1.2% from a month earlier, to NT$5.4 billion (US$170 million), because of laggard in cooper-process expansion.

ASE plans to add 700-800 copper-wire bonding machines in July and additional 400 machines in the fourth quarter.

Siliconware has been compelled to revise 45% upward capital-expenditure budget for this year to NT$21 billion (US$656 million) so that it can install more copper-wire bonding machines at pace of 800 to 900 systems a quarter.

Industry watchers estimated ASE`s revenue growth rate to slow down to less than 10% in the third quarter, lower than previously projected 10-15%.

(by Ken Liu)