Analysis On The Investment Strategy In China Mainland Of Advanced Semiconductor Engineering, Inc. And It's Effect On The Corporate Value

In order to close to clients, Taiwanese wafer probe and packing industry started to move to mainland China. Additionally, increasing land and labor cost, labor shortage and strict environmental regulation accelerate the industry's movement. Moreover, Chinese economy revolution which opens the door to foreign investors attracted many Taiwanese companies to invest their new plans in China. However, the performance of the investments varies with different investors. The methodology of this study is to focus on financial result as measuring element to evaluate investment performance. Advanced Semiconductor Engineering, Inc., (ASE) will be used as case study. This study will use not only industry and strategy analysis but also the financial result to evaluate the company value.The result shows that the market of wafer probe and packing has high growth potential because the consumption electronic products market grows rapidly.ASE set up the venture exclusively with its own investment which is easy to manage. Additionally, early entering to the market makes ASE gained preferential term in investment and strength in market and selling channel. Moreover, to locate in Shanghai and Shuzou which are close to harbor can reduce the transportation cost and serve the clients easily. The success of the investment can be showed from these three dimensions. Additionally, the financial contribution from Chinese subsidiaries to parent company's financial result shows the successful internationalization strategy of the company.However, to observe the impact on enterprise value by the strategy, the study found that the value of the enterprise was under estimated. The estimation include measurable, such as financial result, and immeasurable, such as culture and outside environment. To reveal the performance to be visible might take three to five years. It is too early to inspect this element of ASE.