Date
18 October 2017
Hon Hai and Advanced Semiconductor are in a race to gain control of Siliconware Precision Industries. Photo: Bloomberg
Hon Hai and Advanced Semiconductor are in a race to gain control of Siliconware Precision Industries. Photo: Bloomberg

Apple suppliers fight for control of Taiwan chip firm SPIL

Hon Hai Precision Industry Co. and Advanced Semiconductor Engineering Inc. (ASE) , two key players in tech giant Apple Inc.’s supply chain, are battling for control of Taiwanese chip firm Siliconware Precision Industries Co. (SPIL), the Wall Street Journal reported.

At stake are billions of dollars in potential revenue and new orders from Apple, the report said.

In September, ASE completed a 25 percent stake purchase in SPIL, hoping to ultimately gain a controlling stake in the company.

But the plans were thrown off the mark as SPIL announced a deal to collaborate with Hon Hai, the world’s biggest electronics contract manufacturer and the main assembler for Apple’s iPhones.

The deal included a share swap that would give Hon Hai, also known as Foxconn, a bigger stake in SPIL and more voting clout than ASE has, especially when combined with the shares of SPIL’s founders, the Journal noted.

Foxconn says it is hoping to join forces with SPIL to expand into new areas that could help win more business from Apple, specifically, a technology that packs multiple components onto a tiny chip.

SPIL is holding a shareholder meeting Thursday at which it hopes to seal the deal.

ASE, meanwhile, has sent letters to shareholders, urging them to vote against the share swap. The company can’t vote Thursday because its stake purchase wasn’t registered in time, according to the report.

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