Stop the presses: supply chain companies really, really want Apple’s business.
According to a new report, key Apple manufacturers Foxconn and Advanced Semiconductor Engineering (ASE) are currently battling over control of a third company, Siliconware Precision Industries, a.k.a. SPIL. Why? Because it will help them win more orders from Apple, of course.
The Taiwan-based Advanced Semiconductor Engineering revealed a plan back in August to acquire a 25 percent stake in SPIL through a $1 billion offer, which was ultimately completed in September. However, SPIL threw a spanner in the works by also announcing that it planned to work with ACE rival company Foxconn — through a share swap giving Foxconn a bigger voting stake in SPIL than ASE.
SPIL is hoping to seal the deal with Foxconn at a shareholder meeting this Thursday. But ASE is trying to scupper the deal by sending a letter to shareholders, asking for them to vote against the share swap.
Further confusing matters is the fact that SPIL has said it plans to work with Foxconn whether or not the deal is completed. Foxconn wants to work with SPIL to create system-in-package (SiP) chips for Apple.
Got that?
With billions of dollars at stake, the battle is reportedly heating up — although we don’t yet know what the outcome will be. With all the love triangles involved, though, it all sounds a whole lot like the corporate version of an episode of The O.C.
This isn’t the first time we’ve heard about Apple manufacturers scrapping. Last year, TSMC and Samsung battled over Apple chip orders, with the case even winding up in court due to accusations of industrial espionage.
And Apple just gets to sit back and wait for the dust to settle before handing down its orders. It’s nice to be popular.
Source: WSJ
