• Capital expenditures in 1Q16 totaled US$115 million, of which US$62 million were used for packaging, US$47 million for testing, US$2 million for EMS and US$4 million for interconnect materials.
• As of March 31, 2016, total unused credit lines amounted to NT$173,204 million.
• Current ratio was 1.25 and net debt to equity ratio was 0.41 as of March 31, 2016.
• Total number of employees was 63,357 as of March 31, 2016, compared to 65,789 as of December 31, 2015.

BUSINESS REVIEW

Packaging Operations[3]

• Gross margin for our packaging operations during the quarter was 19.1%, down by 4.4 percentage points from 4Q15.
• Capital expenditures for our packaging operations amounted to US$62 million during the quarter, of which US$30 million were used for purchases of wafer bumping and flip chip packaging equipment and US$28 million for common equipment purchases, including SiP equipment purchases, and US$4 million for wirebond packaging specific purposes.

Testing Operations

• Depreciation, amortization and rental expense associated with our testing operations amounted to NT$1,681 million during the quarter, up from NT$1,676 million in 4Q15.
• In 1Q16, gross margin for our testing operations was 32.9%, down by 4.7 percentage point from the previous quarter.
• Capital expenditures for our testing operations amounted to US$47 million during the quarter

EMS Operations

• In 1Q16, gross margin for our EMS operations was 8.1%, up by 0.8 percentage points from the previous quarter.
• Capital expenditures for our EMS operations amounted to US$2 million during the quarter.

Substrate Operations

• PBGA substrate manufactured by ASE amounted to NT$2,270 million during the quarter, up by NT$289 million, or by 15% from 4Q15. Of the total output of NT$2,270 million, NT$892 million was from sales to external customers.
• Gross margin for substrate operations was 16.9% during the quarter, up by 3.9 percentage points from 4Q15.
• In 1Q16, our internal substrate manufacturing operations supplied 31% (by value) of our total substrate requirements.

Customers

IC ATM CONSOLIDATED BASIS

• Our five largest customers together accounted for approximately 35% of our total net revenues in 1Q16, compared to 37% in 4Q15. One customer accounted for more than 10% of our total net revenues in 1Q16.
• Our top 10 customers contributed 51% of our total net revenues during the quarter, compared to 54% in 4Q15.
• Our customers that are integrated device manufacturers, or IDMs, accounted for 35% of our total net revenues during the quarter, compared to 33% in 4Q15.

EMS BASIS

• Our five largest customers together accounted for approximately 77% of our total net revenues in 1Q16, compared to 85% in 4Q15. One customer accounted for more than 10% of our total net revenues in 1Q16.
• Our top 10 customers contributed 89% of our total net revenues during the quarter, compared to 92% in 4Q15.

OUTLOOK

Based on our current business outlook and exchange rate assumptions, management projects overall performance for the second quarter of 2016 to be as follows:

• IC ATM business will approach 4Q15 levels, driven by a moderate recovery while SiP business remains seasonally soft;
• IC ATM gross margin should see meaningful improvement from 1Q16, but could be a bit lower than 4Q15;
• EMS business should decline moderately on a quarter over quarter basis;
• EMS gross margin should be similar with 1Q16 levels.

About ASE, Inc.

ASE, Inc. is the world's largest independent provider of packaging services and testing services, including front-end engineering testing, wafer probing and final testing services.  With advanced technological capabilities and a global presence spanning Taiwan, China, Korea, Japan, Singapore, Malaysia and the United States, ASE, Inc. has established a reputation for reliable, high quality products and services.  For more information, please visit our website at http://www.aseglobal.com.

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 press release.  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 press release. 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 or electronic industry; changes in our regulatory environment, including our ability to comply with new or stricter environmental regulations and to resolve environmental liabilities; demand for the outsourced semiconductor packaging, testing and electronic manufacturing services we offer and for such outsourced services generally; the highly competitive semiconductor or manufacturing industry we are involved in; our ability to introduce new technologies in order to remain competitive; international business activities; our business strategy; our future expansion plans and capital expenditures; the strained relationship between the Republic of China and the People's Republic of China; general economic and political conditions; the recent global economic crisis; possible disruptions in commercial activities caused by natural or human-induced disasters; 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 2014 Annual Report on Form 20-F filed on March 18, 2015.

Supplemental Financial Information

IC ATM Consolidated Operations