• Gross margin for our packaging operations for the quarter was 21.5%, up by 2.4 percentage points from 1Q16.
• Capital expenditures for our packaging operations amounted to US$136 million for the quarter, of which US$56 million were used in purchases of wafer bumping and flip chip packaging equipment, US$52 million were used in purchase of common equipment, including SiP equipment purchases, and US$28 million were used in wirebond packaging specific purposes.

Testing Operations

• Depreciation, amortization and rental expense associated with our testing operations amounted to NT$1,657 million during the quarter, down from NT$1,681 million in 1Q16.
• In 2Q16, gross margin for our testing operations was 36.8%, up by 3.9 percentage point from 1Q16.
• Capital expenditures for our testing operations amounted to US$107 million during the quarter.

EMS Operations

• In 2Q16, gross margin for our EMS operations was 10.3%, up by 2.2 percentage points from 1Q16.
• Capital expenditures for our EMS operations amounted to US$4 million during the quarter.

Substrate Operations

• PBGA substrate manufactured by ASE amounted to NT$2,477 million for the quarter, up by NT$207 million, or by 9% from 1Q16. Of the total output of NT$2,477 million, NT$759 million was from sales to external customers.
• Gross margin for substrate operations was 18.8% for the quarter, up by 1.9 percentage points from 1Q16.
• In 2Q16, our internal substrate manufacturing operations supplied 37% (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 2Q16, remained the same as 1Q16. No customer accounted for more than 10% of our total net revenues in 2Q16.
• Our top 10 customers contributed 51% of our total net revenues during the quarter, which remained the same as 1Q16.
• Our customers that are integrated device manufacturers, or IDMs, accounted for 33% of our total net revenues during the quarter, compared to 35% in 1Q16.

EMS Basis

• Our five largest customers together accounted for approximately 76% of our total net revenues in 2Q16, compared to 77% in 1Q16. One customer accounted for more than 10% of our total net revenues in 2Q16.
• Our top 10 customers contributed 88% of our total net revenues for the quarter, compared to 89% in 1Q16.

OUTLOOK

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

• IC ATM capacity will increase 5% sequentially;
• IC ATM utilization rate will also increase 5% sequentially;
• IC ATM gross margin should be around 4Q15 levels;
• EMS business should approach 2Q15 levels;
• EMS gross margin should approach 1Q16 levels.

About ASE, Inc.

ASE, Inc. is among the leading providers 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 uncertainties as to whether we can complete the acquisition of 100% of Siliconware Precision Industries Co., Ltd. shares not otherwise owned by ASE; 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 2015 Annual Report on Form 20-F filed on April 29, 2016.