ASE's clients may slash orders after plant said to pollute -reports

Sunday, 15 Dec 2013 | 9:43 PM ET

TAIPEI, Dec 16 (Reuters) - Qualcomm Inc and other clients of Advanced Semiconductor Engineering Inc (ASE) have started to consider shifting some of their business elsewhere after the Taiwanese company's main plant was accused of polluting a river, local media said on Monday.

Shares in ASE, the world's top chip packaging and testing firm, slid 6.5 percent on Monday after the newspaper reports. They have lost 14 percent since early last week when news about the plant broke.

Local government officials have said they want to shut company's main plant in southern Taiwan city of Kaohsiung, accusing the company of discharging water contaminated by heavy metals into a river. Kaohsiung prosecutors have also said they want to question ASE Chairman Jason Chang.

Qualcomm and MediaTek Inc have started looking at shifting orders to ASE's smaller rivals such as Siliconware Precision Industries Co Ltd and Amkor Technology Inc , the Commercial Times and the Economic Daily newspapers said, citing unidentified industry sources.

Qualcomm could not be reached for comment, while Mediatek said they had no comment.

ASE said last week that its test results for the water from the plant had differed from those of government officials as the tests were taken at different times. The company has said it did not falsify the test results.

Representatives for ASE officials were not immediately available for comment on Monday.

(Reporting by Faith Hung; Editing by Edwina Gibbs)

  Price   Change %Change
Advanced Semiconductor Engineering