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Equity
 12 Months Ended
Dec. 31, 2019
Text block [abstract]  
Equity
25.
EQUITY
 
a.
Share capital
 
Ordinary shares
 
 
 
December 31
 
 
2018
 
2019
 
 
 
 
 
Numbers of shares authorized (in thousands)
 
 
5,000,000
 
 
 
5,000,000
 
 
 
 
 
 
 
 
 
 
Numbers of shares reserved (in thousands)
 
 
 
 
 
 
 
 
Employee share options
 
 
400,000
 
 
 
400,000
 
 
 
 
 
 
 
 
 
 
Number of shares issued and fully paid (in thousands)
 
 
4,321,714
 
 
 
4,330,528
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31
 
 
2018
 
2019
 
 
NT$
 
NT$
 
US$ (Note 4)
 
 
 
 
 
 
 
Share capital authorized
 
$
50,000,000
 
 
$
50,000,000
 
 
$
1,671,682
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share capital reserved
 
 
 
 
 
 
 
 
 
 
 
 
Employee share options
 
$
4,000,000
 
 
$
4,000,000
 
 
$
133,735
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share capital issued and fully paid
 
$
43,217,144
 
 
$
43,305,287
 
 
$
1,447,853
 
 
 
American Depositary Receipts
 
The Company’s ADS represents 2 ordinary shares of the Company. As of December 31, 2018 and 2019, 140,042 thousand and 125,542 thousand ADSs were outstanding and represented approximately 280,085 thousand and 251,084 thousand ordinary shares of the Company, respectively.
 
b.
Capital surplus
 
 
 
December 31
 
 
2018
 
2019
 
 
NT$
 
NT$
 
US$ (Note 4)
 
 
 
 
 
 
 
May be used to offset a deficit,
distributed as cash dividends,
or transferred to share capital (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Issuance of ordinary shares
 
$
12,906,401
 
 
$
13,070,330
 
 
$
436,989
 
Merger by share exchange
 
 
117,693,658
 
 
 
117,693,658
 
 
 
3,934,927
 
Difference between consideration and the carrying amount of the subsidiaries’ net assets during actual disposal or acquisition
 
 
6,034,102
 
 
 
3,254,489
 
 
 
108,809
 
 
 
 
136,634,161
 
 
 
134,018,477
 
 
 
4,480,725
 
 
 
 
 
 
 
 
 
 
 
 
 
 
May be used to offset a deficit only
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Changes in percentage of ownership interest in subsidiaries (2)
 
 
3,727,336
 
 
 
891,876
 
 
 
29,819
 
Treasury share transactions
 
 
182,354
 
 
 
364,708
 
 
 
12,193
 
Exercised employee share options
 
 
1,366,480
 
 
 
1,443,995
 
 
 
48,278
 
Expired share options (Note 29)
 
 
645,978
 
 
 
645,903
 
 
 
21,595
 
Share of changes in capital surplus of associates
 
 
87,136
 
 
 
16,266
 
 
 
544
 
Dividends that the claim period has elapsed and unclaimed by shareholders
 
 
872
 
 
 
1,942
 
 
 
65
 
 
 
 
6,010,156
 
 
 
3,364,690
 
 
 
112,494
 
 
 
 
 
 
 
 
 
 
 
 
 
 
May not be used for any purpose
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Employee share options
 
 
583,542
 
 
 
1,304,250
 
 
 
43,606
 
Others (3)
 
 
48,805
 
 
 
222,946
 
 
 
7,454
 
 
 
 
632,347
 
 
 
1,527,196
 
 
 
51,060
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
143,276,664
 
 
$
138,910,363
 
 
$
4,644,279
 
 
 
1)
Such capital surplus may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Company’s capital surplus and once a year).
 
2)
Such capital surplus arises from the effect of changes in ownership interest in a subsidiary resulted from equity transactions other than actual disposal or acquisition, or from changes in capital surplus of subsidiaries accounted for using the equity method.
 
3)
Such capital surplus represents the excess of the carrying amount of related accounts over the par value due to employee share options exercised and the Company has not completed registration formalities.
 
The Company’s special shareholders’ meeting held in June 2018 resolved to distribute cash to its shareholders in the amount of NT$10,795,980 thousand from capital surplus arising from issuance of ordinary shares.
 
c.
Retained earnings and dividend policy
 
The amended Articles of Incorporation of the Company (the “Articles”) approved in shareholders’ meeting in June 2019 provides that annual net income shall be distributed in the following order:
 
1)
Replenishment of deficits;
 
2)
10.0% as legal reserve;
 
3)
Special reserve appropriated or reversed in accordance with laws or regulations set forth by the authorities concerned;
 
For the policies on the distribution of employees’ compensation and remuneration of directors, refer to employees’ compensation and remuneration of directors in Note 26(g).
 
The Company is currently in the mature growth stage. To meet the capital needs for business development now and in the future and satisfy the shareholders’ demand for cash inflows, the Company shall use residual dividend policy to distribute dividends, of which the cash dividend is not lower than 30% of the total dividend distribution, with the remainder to be distributed in shares. A distribution plan is also to be made by the board of directors and passed for resolution in the shareholders’ meeting.
 
Appropriation of earnings to legal reserve shall be made until the legal reserve equals the Company’s share capital. Legal reserve may be used to offset deficits. If the Company has no deficit and the legal reserve has exceeded 25% of the Company’s share capital, the excess may be transferred to capital or distributed in cash.
 
Items referred to under Rule No. 1010012865 and Rule No. 1010047490 issued by the Financial Supervisory Commission R.O.C. and in the directive titled “Questions and Answers for Special Reserves Appropriated Following Adoption of IFRSs” should be appropriated to or reversed from a special reserve by the Company.
 
The appropriation of earnings for 2018 resolved at the Company’s shareholders’ meeting in June 2019, was as follows:
 
 
 
Appropriation of Earnings
 
Dividends Per Share
 
 
NT$
 
US$ (Note 4)
 
NT$
 
US$ (Note 4)
 
 
 
 
 
 
(in dollars)
 
(in dollars)
 
 
 
 
 
 
 
 
 
Legal reserve
 
$
2,203,895
 
 
$
73,684
 
 
 
 
 
 
 
 
 
Special reserve
 
 
3,548,844
 
 
 
118,651
 
 
 
 
 
 
 
 
 
Cash dividends
 
 
10,806,454
 
 
 
361,299
 
 
$
2.50
 
 
$
0.1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
16,559,193
 
 
$
553,634
 
 
 
 
 
 
 
 
 
 
d.
Others equity items
 
1)
Exchange differences on translating foreign operations
 
 
 
For the Year Ended December 31
 
 
2017
 
2018
 
2019
 
 
NT$
 
NT$
 
NT$
 
US$ (Note 4)
 
 
 
 
 
 
 
 
 
Balance at January 1
 
$
(1,643,623
)
 
$
(6,733,659
)
 
$
(5,888,574
)
 
$
(196,876
)
Exchange differences on translating foreign operations
 
 
(4,952,815
)
 
 
426,186
 
 
 
(4,788,135
)
 
 
(160,085
)
Share from associates and joint venture accounted for using the equity method
 
 
(137,221
)
 
 
136,608
 
 
 
(85,975
)
 
 
(2,875
)
Disposal of associates and joint venture accounted for using the equity method
 
 
—  
 
 
 
282,291
 
 
 
—  
 
 
 
—  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31
 
$
(6,733,659
)
 
$
(5,888,574
)
 
$
(10,762,684
)
 
$
(359,836
)
 
2)
Unrealized gain (loss) on available-for-sale financial assets
 
 
 
For the Year Ended December 31, 2017
 
 
NT$
 
 
 
Balance at January 1, 2017
 
$
(197,314
)
Unrealized gain arising on revaluation of available-for-sale financial assets
 
 
169,585
 
Cumulative loss reclassified to profit or loss on impairment of available-for-sale financial assets
 
 
50,206
 
Cumulative gain reclassified to profit or loss on disposal of available-for-sale financial assets
 
 
(1,517
)
Share from associates and joint venture accounted for  using the equity method
 
 
401,610
 
 
 
 
 
 
Balance at December 31, 2017
 
$
422,570
 
 
3)
Unrealized gain (loss) on financial assets at FVTOCI
 
 
 
For the Year Ended December 31
 
 
2018
 
2019
 
 
NT$
 
NT$
 
US$ (Note 4)
 
 
 
 
 
 
 
Balance at January 1
 
$
422,570
 
 
$
(1,015,107
)
 
$
(33,939
)
Adjustment on initial application of IFRS 9
 
 
(287,053
)
 
 
—  
 
 
 
—  
 
Balance at January 1 as adjusted
 
 
135,517
 
 
 
(1,015,107
)
 
 
(33,939
)
Unrealized gain (loss) recognized during the year
 
 
 
 
 
 
 
 
 
 
 
 
  Debt instruments
 
 
(63,076
)
 
 
(2,052
)
 
 
(69
)
  Equity instruments
 
 
(398,513
)
 
 
(283,472
)
 
 
(9,477
)
Share from associates and joint venture accounted for using the equity method
 
 
(555,271
)
 
 
1,501,689
 
 
 
50,207
 
Realized loss (gain) recognized during the year
 
 
 
 
 
 
 
 
 
 
 
 
  Disposal of equity instruments and transferred cumulative gain to retained earnings
 
 
(1,518
)
 
 
—  
 
 
 
—  
 
Disposal of associates and joint venture accounted for using the equity method
 
 
(133,364
)
 
 
—  
 
 
 
—  
 
Share from associates and joint venture accounted for using the equity method
 
 
1,118
 
 
 
(404,156
)
 
 
(13,512
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31
 
$
(1,015,107
)
 
$
(203,098
)
 
$
(6,790
)
 
 
 
 
 
 
 
 
 
 
 
 
 
e
.
 
Treasury shares (in thousand shares)
 
 
 
 
Balance at
 
 
 
 
 
Balance at
 
 
January 1
 
Addition
 
Decrease
 
December 31
 
 
 
 
 
 
 
 
 
2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares held by subsidiaries
 
 
145,883
 
 
 
—  
 
 
 
—  
 
 
 
145,883
 
Shares reserved for bonds conversion
 
 
120,000
 
 
 
—  
 
 
 
—  
 
 
 
120,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
265,883
 
 
 
—  
 
 
 
—  
 
 
 
265,883
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares held by subsidiaries
 
 
145,883
 
 
 
—  
 
 
 
(72,942
)
 
 
72,941
 
Shares reserved for bonds conversion
 
 
120,000
 
 
 
—  
 
 
 
(120,000
)
 
 
—  
 
Shares repurchased from dissenting shareholders in accordance with Business Mergers And Acquisitions Act
 
 
—  
 
 
 
1,852
 
 
 
(1,852
)
 
 
—  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
265,883
 
 
 
1,852
 
 
 
(194,794
)
 
 
72,941
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares held by subsidiaries
 
 
72,941
 
 
 
—  
 
 
 
—  
 
 
 
72,941
 
 
 
The Company’s shares held by its subsidiaries at each balance sheet date were as follows:
 
 
 
Shares
Held By Subsidiaries
 
Carrying Amount
 
Carrying Amount
 
Fair Value
 
Fair Value
 
 
(in thousand shares)
 
NT$
 
US$
(Note 4)
 
NT$
 
US$
(Note 4)
 
 
 
 
 
 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ASE Test
 
 
44,100
 
 
$
1,380,721
 
 
 
 
 
 
$
2,571,044
 
 
 
 
 
J&R Holding
 
 
23,352
 
 
 
381,709
 
 
 
 
 
 
 
1,361,415
 
 
 
 
 
ASE Test, Inc.
 
 
5,489
 
 
 
196,677
 
 
 
 
 
 
 
320,031
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
72,941
 
 
$
1,959,107
 
 
 
 
 
 
$
4,252,490
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ASE Test
 
 
44,100
 
 
$
1,380,721
 
 
$
46,162
 
 
$
3,669,140
 
 
$
122,673
 
J&R Holding
 
 
23,352
 
 
 
381,709
 
 
 
12,762
 
 
 
1,942,876
 
 
 
64,957
 
ASE Test, Inc.
 
 
5,489
 
 
 
196,677
 
 
 
6,576
 
 
 
456,717
 
 
 
15,270
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
72,941
 
 
$
1,959,107
 
 
$
65,500
 
 
$
6,068,733
 
 
$
202,900
 
 
 
Fair value (Level 1) of the Company’s shares held by subsidiaries is based on the closing price from an available published price quotation.
 
In March 2018, ASE’s board of directors approved, in accordance with Business Mergers and Acquisitions Act, to repurchase ASE’s 1,852 thousand ordinary shares at $38.5 per share held by the shareholders dissenting on the share exchange transaction which has been approved by both of ASE and SPIL’s special shareholders’ meetings on February 12, 2018. In addition, ASE’s board of directors approved a capital reduction in April 2018 to cancel ASE’s 121,852 thousand treasury shares and the record date was April 9, 2018. ASE has completed the registration formalities before April 30, 2018.
 
ASE issued ordinary shares in connection with its merger with its subsidiaries. The shares held by its subsidiaries were reclassified to treasury shares on the proportion owned by ASE. As disclosed in Note 1, ASE’s ordinary shares held by subsidiaries were exchanged to the Company’s ordinary shares on April 30, 2018 in accordance with the joint share exchange agreement.
 
The subsidiaries holding the aforementioned treasury shares retain shareholders’ rights except the rights to participate in any capital increase by cash and voting.
 
f.
Non-controlling interests
 
 
 
 
For the Year Ended December 31
 
 
2017
 
2018
 
2019
 
 
NT$
 
NT$
 
NT$
 
US$ (Note 4)
 
 
 
 
 
 
 
 
 
Balance at January 1
 
$
12,000,551
 
 
$
13,190,129
 
 
$
17,639,487
 
 
$
589,752
 
Adjustment on initial application of IFRS 15
 
 
—  
 
 
 
5,183
 
 
 
—  
 
 
 
—  
 
Balance at January 1 as adjusted
 
 
12,000,551
 
 
 
13,195,312
 
 
 
17,639,487
 
 
 
589,752
 
Share of profit for the year
 
 
1,677,941
 
 
 
1,203,588
 
 
 
1,207,974
 
 
 
40,387
 
Other comprehensive income (loss)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exchange difference on translating foreign operations
 
 
(334,920
)
 
 
(198,365
)
 
 
(414,010
)
 
 
(13,842
)
Unrealized gain on available-for-sale financial assets
 
 
5,763
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
Unrealized loss on equity instruments at FVTOCI
 
 
—  
 
 
 
(23,928
)
 
 
(10,773
)
 
 
(360
)
Remeasurement on defined benefit plans
 
 
(13,724
)
 
 
(30,079
)
 
 
(7,422
)
 
 
(248
)
Non-controlling interests arising from acquisition of subsidiaries (Note 30)
 
 
—  
 
 
 
3,582,866
 
 
 
666,651
 
 
 
22,289
 
Subscribing for ordinary shares form subsidiaries’ cash capital increase
 
 
—  
 
 
 
—  
 
 
 
83,044
 
 
 
2,776
 
Acquisition of non-controlling interests in subsidiaries (Note 32)
 
 
—  
 
 
 
(2,492,915
)
 
 
(5,084,785
)
 
 
(170,003
)
Partial disposal of subsidiaries (Note 32)
 
 
(3,055
)
 
 
1,693,064
 
 
 
—  
 
 
 
—  
 
Subsidiaries’ buy back of their own outstanding ordinary shares (Note 32)
 
 
—  
 
 
 
(801,884
)
 
 
(2,017,319
)
 
 
(67,446
)
 
 
 
  
 
 
 
 
 
For the Year Ended December 31
 
 
2017
 
2018
 
2019
 
 
NT$
 
NT$
 
NT$
 
US$ (Note 4)
 
 
 
 
 
 
 
 
 
Non-controlling interest relating to outstanding vested employee share options granted by subsidiaries
 
$
263,213
 
 
$
1,936,643
 
 
$
1,672,310
 
 
$
55,911
 
Non-controlling interest relating to outstanding expired employee share options granted by subsidiaries
 
 
(159,200
)
 
 
—  
 
 
 
—  
 
 
 
—  
 
Cash dividends to non-controlling interests
 
 
(246,440
)
 
 
(424,815
)
 
 
(360,245
)
 
 
(12,044
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31
 
$
13,190,129
 
 
$
17,639,487
 
 
$
13,374,912
 
 
$
447,172