Advanced Semiconductor Engineering, Inc. Reports Unaudited Consolidated Financial Results for the Third Quarter of 2009

    Note 1: All financial information presented in this press release is
    unaudited, consolidated and prepared in accordance with accounting
    principles generally accepted in the Republic of China, or ROC GAAP.  Such
    financial information is generated internally by us, and has not been
    subjected to the same review and scrutiny, including internal auditing
    procedures and audit by our independent auditors, to which we subject our
    audited consolidated financial statements, and may vary materially from
    the audited consolidated financial information for the same period.  Any
    evaluation of the financial information presented in this press release
    should also take into account our published audited consolidated financial
    statements and the notes to those statements.  In addition, the financial
    information presented is not necessarily indicative of our results for any
    future period.

    RESULTS OF OPERATIONS

    3Q09 Results Highlights
    * Net revenue contribution from IC packaging operations (including module
      assembly), testing operations, and substrates sold to third parties was
      NT$20,005 million, NT$4,588 million and NT$612 million, respectively,
      and each represented approximately 79%, 18% and 3%, respectively, of
      total net revenues for the quarter.
    * Cost of revenues was NT$18,848 million, down 3% year-over-year and up
      15% sequentially.
      - Raw material cost totaled NT$7,442 million during the quarter,
        representing 30% of total net revenue, compared with NT$6,168 million
        and 30% of net revenue in the previous quarter.
      - Labor cost totaled NT$3,590 million during the quarter, representing
        14% of total net revenue, compared with NT$3,028 million and 15% of
        net revenue in the previous quarter.
      - Depreciation, amortization and rental expenses totaled NT$4,108
        million during the quarter, down 1% year-over-year and down 1%
        sequentially.
    * Total operating expenses during 3Q09 were NT$2,390 million, including
      NT$956 million in R&D and NT$1,434 million in SG&A, compared with
      operating expenses of NT$2,028 million in 2Q09.  Total operating
      expenses as a percentage of net revenue for the current quarter were 9%,
      down from 11% in 3Q08 and 10% in 2Q09.
    * Operating income for the quarter totaled NT$3,967 million, up from
      NT$2,496 million in the previous quarter.  Operating margin increased to
      16% in 3Q09 from 12% in 2Q09.
    * In terms of non-operating items:
      - Net interest expense was NT$303 million, down from NT$340 million a
        quarter ago primarily due to lower average interest rates during the
        quarter.
      - Net foreign exchange loss of NT$30 million was primarily attributable
        to the depreciation of the U.S. dollar against the N.T. dollar.
      - Gain on equity-method investments of NT$112 million was primarily
        attributable to our investment in USI.
      - Other non-operating income of NT$111 million was primarily related to
        scrap sales and other miscellaneous gains.  Total non-operating
        expenses for the quarter were NT$110 million, compared to
        NT$561million for 3Q08 and NT$290 million for 2Q09.
    * Income before tax was NT$3,857 million for 3Q09, compared to NT$2,206
      million in the previous quarter.  We recorded income tax expense of
      NT$558 million during the quarter, compared to NT$559 million in 2Q09.
    * In 3Q09, net income was NT$3,187 million, compared to NT$2,212 million
      for 3Q08 and NT$1,674 million for 2Q09.
    * Our total number of shares outstanding at the end of the quarter was
      5,480,262,954, including treasury stock owned by our subsidiaries.  Our
      3Q09 diluted earnings per share of NT$0.61 (or US$0.093 per ADS) was
      based on 5,186,949,206 weighted average number of shares outstanding in
      3Q09.

    LIQUIDITY AND CAPITAL RESOURCES
    * As of Sep 30, 2009, our cash and other financial assets totaled
      NT$32,520 million, compared to NT$28,676 million as of Jun 30, 2009.
    * Capital expenditures in 3Q09 totaled US$109 million, of which US$91
      million was used for IC packaging, US$17 million was used for testing
      and US$1 million was used for interconnect materials.
    * As of Sep 30, 2009, we had total bank debt of NT$66,381 million,
      compared to NT$62,176 million as of June 30, 2009.  Total bank debt
      consisted of NT$17,856 million of revolving working capital loans,
      NT$3,972 million of the current portion of long-term debt, and NT$44,553
      million of long-term debt.  Total unused credit lines amounted to
      NT$52,404 million.
    * Current ratio as of Sep 30, 2009 was 1.52, compared to 1.90 as of Jun 30,
      2009.  Net debt to equity ratio was 0.48 as of Sep 30, 2009.
    * Total number of employees was 27,940 as of Sep 30, 2009, compared to
      30,511 as of Sep 30, 2008 and 26,406 as of Jun 30, 2009.

    BUSINESS REVIEW

    IC Packaging Services (Note 2)
    * Net revenues generated from our IC packaging operations were NT$20,005
      million during the quarter, down NT$122 million, or 1% year-over-year,
      and up NT$3,414 million, or 21% sequentially.
    * Net revenues from advanced substrate and leadframe-based packaging
      accounted for 88% of total IC packaging net revenues during the quarter,
      down by 3 percentage points from the previous quarter.
    * Gross margin for our IC packaging operations during the quarter was 21%,
      flat from same period last year and up by 2 percentage points
      sequentially.
    * Capital expenditures for our IC packaging operations amounted to US$91
      million during the quarter, of which US$71 million was used for
      wirebonding packaging capacity and US$20 million was used for wafer
      bumping and flip chip packaging equipment.
    * As of Sep 30, 2009, there were 8,880 wirebonders in operation.  391
      wirebonders were added and 12 wirebonders were disposed of during the
      quarter.
    * Net revenues from flip chip packages and wafer bumping services
      accounted for 16% of total packaging net revenues, up by 2 percentage
      point from the previous quarter.

    Note 2: IC packaging services include module assembly services.

    Testing Services
    * Net revenues generated from our testing operations were NT$4,588 million,
      down NT$607 million, or 12% year-over-year, and up NT$711 million, or
      18%, sequentially.
    * Net revenue from final testing, wafer sorting, and engineering testing
      accounted for 82%, 15%, and 3%, respectively, of total net revenues, all
      of which remained unchanged from the previous quarter.
    * Depreciation, amortization and rental expense associated with our
      testing operations amounted to NT$1,436 million, down from NT$1,593
      million in 3Q08 and down from NT$1,480 million in 2Q09.
    * In 3Q09, gross margin for our testing operations was 35%, down by 1
      percentage point year-over-year and up by 7 percentage points
      sequentially.
    * Capital spending on our testing operations amounted to US$17million
      during the quarter.
    * As of Sep 30, 2009, there were 1,569 testers in operation.  70 testers
      were added and 11 testers were disposed of during the quarter.

    Substrate Operations
    * PBGA substrate manufactured by ASE amounted to NT$2,249 million during
      the quarter, down NT$32 million, or 1% year-over-year, and up NT$410
      million, or 22% from the previous quarter.  Of the total output of
      NT$2,249million, NT$612 million was from sales to external customers.
    * Gross margin for substrate operations was 22% during the quarter, up by
      2 percentage points year-over-year and up by 5 percentage points
      sequentially.
    * In 3Q09, our internal substrate manufacturing operations supplied 52%
      (by value) of our total substrate requirements.

    Customers
    * Our five largest customers together accounted for approximately 27% of
      our total net revenues in 3Q09, compared to 27% in 3Q08 and 32% in 2Q09.
      No single customer accounted for more than 10% of our total net revenues.
    * Our top 10 customers contributed 42% of our total net revenues during
      the quarter, compared to 46% in 3Q08 and 45% in 2Q09.
    * Our customers that are integrated device manufacturers, or IDMs,
      accounted for 35% of our total net revenues during the quarter, compared
      to 41% in 3Q08 and 30% in 2Q09.

                  Supplemental Financial Information



    Consolidated Operations

    Amounts in NT$ Millions             3Q/09         2Q/09          3Q/08
    Net Revenues                       25,205        20,881         25,815
    Revenues by End Application
    Communication                         44%           49%            44%
    Computer                              17%           16%            23%
    Automotive and Consumer               37%           34%            33%
    Others                                 2%            1%             0%
    Revenues by Region
    North America                         52%           55%            55%
    Europe                                13%           11%            15%
    Taiwan                                20%           22%            18%
    Japan                                 10%            8%             9%
    Other Asia                             5%            4%             3%



    IC Packaging Services

    Amounts in NT$ Millions             3Q/09         2Q/09          3Q/08
    Net Revenues                       20,005        16,591         20,127
    Revenues by Packaging Type
    Advanced substrate &
     leadframe based                      88%           91%            89%
    Traditional leadframe based            6%            5%             4%
    Module assembly                        3%            2%             4%
    Others                                 3%            2%             3%
    Capacity
    CapEx (US$ Millions) *                 91            31             50
    Number of Wirebonders               8,880         8,501          8,436



    Testing Services

    Amounts in NT$ Millions             3Q/09         2Q/09          3Q/08
    Net Revenues                        4,588         3,877          5,195
    Revenues by Testing Type
    Final test                            82%           82%            80%
    Wafer sort                            15%           15%            18%
    Engineering test                       3%            3%             2%
    Capacity
    CapEx (US$ Millions) *                 17            13             45
    Number of Testers                   1,569         1,510          1,638

    * Capital expenditure amounts exclude building construction costs.



                   Advanced Semiconductor Engineering, Inc.
                Summary of Consolidated Income Statements Data
                   (In NT$ millions, except per share data)
                                 (Unaudited)

                                    For the three months      For the nine
                                            ended             months ended
                               Sep. 30   Jun. 30   Sep. 30   Sep. 30   Sep. 30
                                 2009     2009       2008     2009       2008
    Net revenues:
    IC Packaging                20,005    16,591    20,127    46,804    59,387
    Testing                      4,588     3,877     5,195    11,233    15,191
    Others                         612       413       493     1,446     1,541
    Total net revenues          25,205    20,881    25,815    59,483    76,119

    Cost of revenues           (18,848)  (16,357)  (19,384)  (47,944)  (57,287)
    Gross profit                 6,357     4,524     6,431    11,539    18,833

    Operating expenses:
    Research and development      (956)     (825)     (907)   (2,531)   (2,844)
    Selling, general and
     administrative             (1,434)   (1,203)   (1,809)   (3,956)   (5,496)
    Total operating expenses    (2,390)   (2,028)   (2,716)   (6,487)   (8,340)
    Operating income (loss)      3,967     2,496     3,715     5,052    10,493

    Net non-operating (expenses)
     income:
    Interest expense - net        (303)     (340)     (421)   (1,078)     (964)
    Foreign exchange gain (loss)   (30)      106      (146)      (30)      449
    Gain (loss) on equity-method
     investments                   112        58        69       194       202
    Others                         111      (114)      (63)      278      (181)
    Total non-operating (expenses)
     income                       (110)     (290)     (561)     (636)     (494)
    Income (loss) before tax     3,857     2,206     3,154     4,416     9,999

    Income tax benefit (expense)  (558)     (559)     (777)   (1,066)   (1,968)
    (Loss) income from continuing
     operations and
     before minority interest    3,299     1,647     2,377     3,350     8,031
    Minority interest             (112)       27      (165)      (55)   (1,071)

    Net income (loss)            3,187     1,674     2,212     3,295     6,960

    Per share data:
    Earnings (losses) per share
    - Basic                    NT$0.62   NT$0.33   NT$0.41   NT$0.64   NT$1.29
    - Diluted                  NT$0.61   NT$0.32   NT$0.41   NT$0.63   NT$1.26


    Earnings (losses) per
     equivalent ADS
    - Basic                   US$0.094  US$0.049  US$0.068  US$0.096  US$0.207
    - Diluted                 US$0.093  US$0.049  US$0.067  US$0.095  US$0.203


    Number of weighted average
     shares used in
     diluted EPS calculation
     (in thousands)          5,186,949 5,164,078 5,403,832 5,202,233 5,489,339

    Exchange rate (NT$
     per US$1)                   32.81     33.16     30.95     33.26     31.02





                   Advanced Semiconductor Engineering, Inc.
                  Summary of Consolidated Balance Sheet Data
                              (In NT$ millions)
                                 (Unaudited)

                                            As of Sep. 30,    As of Jun. 30,
                                                 2009              2009

    Current assets:
    Cash and cash equivalents                     26,059            20,285
    Financial assets - current                     6,461             8,391
    Notes and accounts receivable                 16,847            14,583
    Inventories                                    5,723             5,215
    Others                                         4,397             3,511
    Total current assets                          59,487            51,985

    Financial assets - non current                 4,797             4,587
    Properties - net                              77,566            78,546
    Intangible assets                             12,900            12,091
    Others                                         3,932             3,956
    Total assets                                 158,682           151,165

    Current liabilities:
    Short-term debts - revolving credit           17,856             7,888
    Current portion of long-term debts             3,972             1,932
    Notes and accounts payable                     8,209             6,842
    Others                                         9,047            10,771
    Total current liabilities                     39,084            27,433

    Long-term debts                               44,553            52,356
    Other liabilities                              3,807             3,618
    Total liabilities                             87,444            83,407

    Minority interest                              2,664             2,182

    Shareholders' equity                          68,574            65,576
    Total liabilities & shareholders' equity     158,682           151,165


    Current Ratio                                   1.52              1.90
    Net Debt to Equity                              0.48              0.49




    Contact:

     ASE, Inc.
     Room 1901, No. 333, Section 1
     Keelung Road, Taipei, Taiwan, 110

     Tel: +886-2-8780-5489
     Fax: +886-2-2757-6121
     http://www.aseglobal.com

     Joseph Tung, CFO/Vice President
     Allen Kan, Manager
     Email: ir@aseglobal.com

     Clare Lin, Director (US Contact)
     Email: clare.lin@aseus.com
     Tel:   +1-408-986-6524