Seeking to focus on its core chip-packaging and test business, Advanced Semiconductor Engineering Inc. (ASE) on Tuesday (May 2) announced plans to spin-off its substrate business. ASE (Taipei, Taiwan), the world¡¯s largest chip-packaging house, plans to form a new and independent substrate subsidiary: ASE Electronics Inc.

The move is aimed to strengthen its core competences and further develop its material businesses, according to ASE. Subject to approval of the shareholders' meeting of both ASE and ASE Electronics, the record date of the proposed spin-off is set for Aug. 1.

The book value of the assets to be transferred from ASE to ASE Electronics amounts to NT$4,121,506,001 ($129.8 million) and the net value is NT$2,254,673,641 ($71 million). The total paid-in capital of ASE Electronics will amount to NT$2,284,673,640 ($72 million).