Toshiba, ASE deny report about chip-packaging JV

Toshiba Corp., Japan's largest chipmaker, and Taiwan's Advanced Semiconductor Engineering Inc. denied a Commercial Times report that they will form a chip packaging and testing venture.

Toshiba and Advanced Semiconductor are likely to sign an agreement this year and the venture is poised to start operations in the first half of next year, the Commercial Times reported yesterday, citing unidentified company executives.

Freddie Liu, a spokesman at Advanced Semiconductor, the world's largest chip-packaging and testing company, called the report "completely untrue." Toshiba spokeswoman Hiroko Mochida said "there's absolutely no truth to the report."

Toshiba does some packaging and testing itself and also hires Powertech to do so, Mochida said.

Toshiba last year agreed to buy US$20 million of Powertech bonds convertible into shares. The Hsinchu-based company said in an exchange filing yesterday its relationship with Toshiba hasn't changed.