ASE Provides an Update related to its Kaohsiung Facilities

Company outlines plans to focus on environmental issues and areas of commitment to the city of Kaohsiung

Dec 16, 2013, 06:30 ET from Advanced Semiconductor Engineering, Inc.

TAIPEI, Taiwan, R.O.C., Dec. 16, 2013 /PRNewswire/ -- Advanced Semiconductor Engineering, Inc (TAIEX: 2311, NYSE: ASX), the world's largest semiconductor assembly and test service provider, today announced the steps that the company have taken to address the isolated case of industrial wastewater discharge at ASE Kaohsiung K7 facility on October 1st, 2013 and subsequent developments.  Immediately after the incidents, ASE enlisted the help of industry experts to thoroughly investigate the root cause, and tightened its monitoring systems and reporting procedures.  The ASE Kaohsiung K7 facility continues to adhere to the standards of the national effluent guidelines and currently remains in normal operation.

ASE sincerely apologizes for the high level of public concerns due to the recent incidents and intense media scrutiny.  However, ASE firmly denies all allegations that the company had deliberately discharged contaminated wastewater and illegally installed underground piping within its facilities.  The company is cooperating fully with Taiwan's Ministry of Economic Affairs, the Kaohsiung City Environment Protection Bureau and other related departments in support of their investigations.  We have also heightened our review of all our manufacturing facilities' environmental management and program implementation.

Moving forward, ASE will execute a two-prong approach to environmental protection and pollution prevention.

1.  Engage international and local environmental professionals to assist the company in managing all matters related to our industry's impact on the environment and sustainability.  Provide higher levels of training to develop a skillful and well-disciplined environmental management team.

2.  From 2010 to 2013, ASE has invested a total of NTD392 million in wastewater management.  The company will invest another NTD750 million to expedite the completion of Taiwan's first 20,000 ton per day water recycling plant that will apply the highest standards of water recycling technologies at ASE Kaohsiung's K14.  The water recycling plant is scheduled to begin operations in the second quarter of 2014 and will support the water recycling of all ASE's manufacturing facilities within the Kaohsiung Nantze Export Processing Zone.

ASE's corporate social responsibility is focused on the creation of a sustainable future and the dedication to environmental protection, the use of renewable energy and the reduction of carbon emissions.  A prime example is the construction of ASE Kaohsiung's Building K12 according to international green standards.  K12 has been awarded the EEWH (Ecology, Energy saving, Waste reduction and Health) diamond certificate and has also received the US LEED (Leadership in Energy and Environmental Design) Platinum certification. ASE is the first and only outsourced assembly and test house to be accorded the green certifications.  At the same time, ASE has already broken ground to construct new green manufacturing facilities in the Nantze Export Processing Zone II, and plans to invest another NTD72 billion and create 16,000 job opportunities.

ASE was a humble start-up established in Kaohsiung in the year 1984, and has since expanded its footprint globally out of our base in this city.  From being a small player, to becoming the world's largest IC assembly and test service provider, the city of Kaohsiung had been a meaningful and significant factor to ASE's progress.  Without Kaohsiung, there will not be an ASE!  Next year is ASE's 30th anniversary and the company pledges to contribute at least NTD100 million per year for the next 30 years with a minimum total amount of NTD3 billion to Taiwan's environmental protection efforts.

ASE remains firmly committed to the city of Kaohsiung. Our investments in Kaohsiung will continue and our commitment to the environmental protection remains unchanged.

Safe Harbor Notice

This press release contains "forward-looking statements" within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended, including statements regarding our future results of operations and business prospects.  Although these forward-looking statements, which may include statements regarding our future results of operations, financial condition or business prospects, are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on these forward-looking statements, which apply only as of the date of this presentation.  The words "anticipate", "believe", "estimate", "expect", "intend", "plan" and similar expressions, as they relate to us, are intended to identify these forward-looking statements in this presentation.  Our actual results of operations, financial condition or business prospects may differ materially from those expressed or implied in these forward-looking statements for a variety of reasons, including risks associated with cyclicality and market conditions in the semiconductor industry; demand for the outsourced semiconductor packaging and testing services we offer and for such outsourced services generally; the highly competitive semiconductor industry; our ability to introduce new packaging, interconnect materials and testing technologies in order to remain competitive; our ability to successfully integrate pending and future mergers and acquisitions; international business activities; our business strategy; general economic and political conditions, including the recent global financial crisis; possible disruptions in commercial activities caused by natural or human-induced disasters; our future expansion plans and capital expenditures; the strained relationship between the Republic of China and the People's Republic of China; fluctuations in foreign currency exchange rates; and other factors.  For a discussion of these risks and other factors, please see the documents we file from time to time with the Securities and Exchange Commission, including our 2012 Annual Report on Form 20-F filed on April 24, 2013.


Advanced Semiconductor Engineering, Inc.

Room 1901, No. 333, Section 1

Keelung Road, Taipei, Taiwan, 110

Tel: + 886.2.6636.5678

Fax: + 886.2.2757.6121

Joseph Tung, Chief Financial Officer

Eddie Chang, Senior Director

Joseph Su, Manager

SOURCE Advanced Semiconductor Engineering, Inc.