Investments Accounted for Using the Equity Method

12 Months Ended

Dec. 31, 2023

Investments Accounted for Using the Equity Method

14.	INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD


	December 31
	2022		2023
	NT$		NT$		US$ (Note 4)

Investments in associates	$	14,163,995	$	19,595,234	$	639,949
Investments in joint ventures		515,351		15,377		502


	$	14,679,346	$	19,610,611	$	640,451

Investments in associates

Investments in associates accounted for using the equity method that was not individually material consisted of the following:


		Operating	Carrying Amount as of December 31
Name of Associate	Main Business	Location	2022		2023
			NT$		NT$		US$ (Note 4)

Yann Yuan Investment Co., Ltd. (“Yann Yuan”)	Engaged in investing activities	R.O.C.	$	7,494,541	$	10,250,888	$	334,778
ChipMOS Technologies Inc. (“ChipMOS”)	Engaged in the packaging and testing of semiconductors	R.O.C.		2,748,810		2,786,339		90,997
MACHVISION,INC. (“MACHVISION”)	Engaged in the manufacturing and trading of non-contact optical inspection equipment	R.O.C.		—		2,123,368		69,346
Hung Ching Development & Construction Co. (“HC”)	Engaged in the development, construction and leasing of real estate properties	R.O.C.		1,597,745		2,035,230		66,467
M-Universe Investments Pte. Ltd. (“MU”)	Investment company	Singapore		2,090,663		2,072,314		67,678
Chipletz, Inc. (“CHIPLETZ”)	Fabless substrate design house	U.S.A.		145,640		248,209		8,106
Hung Ching Kwan Co. (“HCK”)	Engaged in the leasing of real estate properties	R.O.C.		244,516		232,446		7,591
Questyle Audio Engineering Co., Ltd. (“QUESTYLE”)	Engaged in the research and development on technology and sales of electronic products, digital products, audio equipment and spare parts, domestic trading; import and export business	China		88,189		72,421		2,365


		Operating	Carrying Amount as of December 31
Name of Associate	Main Business	Location	2022		2023
			NT$		NT$		US$ (Note 4)


Deca Technologies Inc. (“DECA”)	Holding company with group engaged in the development of wafer level packaging	U.S.A.	$	54,040	$	53,357	$	1,743
Goodcare Holdings Inc. (“GOODCARE”)	Holding company, engaged in operation investment, long-term care and home services business	R.O.C.		—		20,811		680

				14,464,144		19,895,383		649,751
	Less: Deferred gain on transfer of land			300,149		300,149		9,802


			$	14,163,995	$	19,595,234	$	639,949

At each balance sheet date, the total percentages of ownership held by the Group were as follows:


	December 31
	2022			2023

Yann Yuan		27.94	%		27.94	%
ChipMOS		10.85	%		10.85	%
MACHVISION		—			23.08	%
HC		26.22	%		26.22	%
MU		42.23	%		42.23	%
CHIPLETZ		20.82	%		19.43	%
HCK		27.31	%		27.31	%
QUESTYLE		6.67	%		6.67	%
DECA		17.85	%		17.84	%
GOODCARE		—			49.00	%

At the end of 2022, the Group evaluated the recoverable amount of its investment in CHIPLETZ by using the value in use. The recoverable amount was lower than the carrying amount and, therefore, the Group recognized an impairment loss of NT$61,206

thousand under the line item of other gains and losses (Note 25). The value in use of its investment in CHIPLETZ was the present value of cash flow projections made by CHIPLETZ’s management with a discount rate of 22.2% at the end of 2022. In September and October 2023, the Group’s subsidiary, ISE Labs, Inc., subscribed

in cash

for additional

newly issued preferred

shares of CHIPLETZ at a percentage different from its existing ownership percentage, which led to a decrease in the Group’s percentage of ownership in CHIPLETZ to 19.43%. The Group considered it

still

has significant influence over CHIPLETZ since it involves in making significant decisions by participating in CHIPLETZ’s board meeting.

In November 2022, the Group’s subsidiary, USISH, invested RMB20,000 thousand to obtain 6.67% ownership of QUESTYLE. The Group considered it has significant influence over QUESTYLE since it involves in making significant decisions by participating in QUESTYLE’s board meeting.

In March 2023, the Group’s subsidiary, ASE Social Enterprise Co., Ltd, acquired 49.00% ownership of GOODCARE and obtained significant influence over GOODCARE.

In June 2023, the Group’s subsidiary, ASE, subscribed for 13,418

thousand ordinary shares of MACHVISION through a private placement by NT$

2,167,007

thousand

(US$

70,771

thousand) in cash; after the subscription, the Group owned 23.08% shareholdings of MACHVISION and the Group is able to exercise significant influence over MACHVISION. Transfer of the aforementioned ordinary shares within

years from the acquisition date is prohibited by regulations. As of December 31, 2023, the Group has completed the identification of the difference between the cost of the investment and the Group’s share of the net fair value of MACHVISION’s identifiable assets and liabilities.

In the second quarter of 2023, the exercise of employee share options issued by DECA led the Group’s percentage of ownership in DECA decreased to 17.84%.

Fair values (Level 1) of investments in associates with available published price quotation are summarized as follows:


	December 31
	2022		2023
	NT$		NT$		US$ (Note 4)

ChipMOS	$	2,643,498	$	3,333,964	$	108,882

HC	$	1,420,636	$	1,904,476	$	62,197

Aggregate information of associates that are not individually material


	For the Year Ended December 31
	2021		2022			2023
	NT$		NT$			NT$		US$ (Note 4)

The Group’s share of:
Net income	$	872,697	$	1,083,538		$	1,091,814	$	35,657
Other comprehensive income (loss)		3,624,403		(3,082,307	)		2,439,733		79,678


Total comprehensive income (loss)	$	4,497,100	$	(1,998,769	)	$	3,531,547	$	115,335

Investments in joint ventures

Investments in joint ventures that was not individually material and accounted for using the equity method consisted of the following:


		Operating Location		Carrying Amount as of December 31
Name of Joint Venture	Main Business	Operating Location		2022		2023
				NT$		NT$		US$ (Note 4)

MUtek Electronics Co., Ltd. (“MUtek”)	Engaged in the production and wholesale of electronic products		R.O.C.	$	26,591	$	15,377	$	502
SUMA-USI Electronics Co., Ltd. (“SUMA-USI”)	Engaged in the design and production of electronic products		China		488,760		—		—


				$	515,351	$	15,377	$	502

At each balance sheet date, the percentages of ownership held by the Group’s

subsidiaries

were as follows:


	December 31
	2022		2023

MUtek		49.00%		49.00%
SUMA-USI		49.00%		—

In January 2023, UGKS entered into a shares transfer agreement with

Suma

Information Industry Co., Ltd. to transfer its 49.00% ownership of

SUMA-USI

based on its business operation strategy. The transfer price was RMB110,880

thousand. After the completion of shares transfer, the Group no longer held ownership of

SUMA-USI.

Aggregate information of joint ventures that were not individually material


	For the Year Ended December 31
	2021		2022		2023
	NT$		NT$		NT$			US$ (Note 4)

The Group’s share of:
Total net income (loss) and comprehensive income (loss)	$	27,003	$	101,839	$	(11,214	)	$	(366	)