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Business Combinations
 12 Months Ended
Dec. 31, 2024
Text block [abstract]  
Business Combinations
29.
BUSINESS COMBINATIONS
 
  a.
Subsidiaries acquired
 
 
 
Principal Activity
 
Date of
Acquisition
 
Proportion of
Voting Equity
Interests
Acquired (%)
 
 
Consideration
Transferred
 
 
 
 
 
 
 
 
 
 
NT$
 
 
US$ (Note 4)
 
Hirschmann
  
Holding company and the group engaged in the design and manufacturing of automotive components
  
October 27, 2023
  
 
100.00
 
  
$
 2,317,201
 
  
       
 
 
    
ASEPCAYMAN  
  
Engaged in the packaging and testing of semiconductors
  
August 1, 2024
  
 
100.00
 
  
$
1,096,373
 
  
$
33,436
 
       
 
 
    
 
 
  
CHE
  
Engaged in the packaging and testing of semiconductors
  
August 1, 2024
  
 
100.00
  
  
$
1,945,678
  
  
$
59,338
  
       
 
 
    
 
 
  
 
  b.
Consideration transferred
 
$                         $                         $                         $                         $                        
   
Hirschmann
    
ASEPCAYMAN
    
CHE
  
   
NT$
    
NT$
    
US$ (Note 4)
    
NT$
    
US$ (Note 4)
  
Cash
  
$
2,317,201
 
  
$
725,059
 
  
$
22,112
 
  
$
1,713,092
 
  
$
52,245
 
Contingent considerations
  
 
-
 
  
 
371,314
 
  
 
11,324
 
  
 
232,586
 
  
 
7,093
 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
$
2,317,201
  
  
$
 1,096,373
  
  
$
33,436
  
  
$
 1,945,678
  
  
$
59,338
  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
In March 2023, the board of directors of USISH resolved to establish a special purpose vehicle (“SPV”, of which 75.1% ownership is owned by USISH’s wholly-owned subsidiary, Universal Global Technology Co., Limited (“UGT”), and 24.9% ownership is owned by an unrelated party, Ample Trading, Co., Ltd. (“Ample Trading”)). The SPV then acquired the automotive wireless business (hereunder, the “Target Business”) carved
out from an unrelated party, TE Connectivity Ltd. The consideration for the acquisition was approximately NT$
2,317,201
thousand, equivalent to US
$
71,452
thousand as the original transaction currency, which was based on the overall valuation of the Target Business and an adjustment for the net debt and net working capital of the Target Business as of the settlement date. The consideration was fully paid in October 2023 and May 2024, respectively.
In February 2024, ASE and ASE (Korea) Inc. entered into share purchase agreements with Cypress Semiconductor Technology Ltd. and Infineon Technologies AG to acquire
100
% shareholdings of ASEPCAYMAN and CHE, respectively. The final purchase price will be adjusted in accordance with the method stipulated in the share purchase agreements. As of December 31, 2024, the consideration of NT$
725,059
 
thousand (US$22,112 thousand), equivalent to EUR
20,403
thousand as the original transaction currency, and NT$
1,713,092
thousand (US$52,245 thousand), equivalent to EUR
48,239
thousand as the original transaction currency, were paid. In addition, according to the share purchase agreement, if operating revenue of ASEPCAYMAN and CHE reaches the predetermined target in the respective years of 2025, 2026 and 2027, the remaining consideration will be paid in annual tranches. If the target is not reached in any one of the three years, the corresponding portion of the remaining consideration will be paid in 2028. As of December 31, 2024, the remaining consideration was recognized as contingent considerations under financial liabilities at FVTPL.
 
  c.
Assets acquired and liabilities assumed at the date of acquisition
 
$                         $                         $                         $                         $                        
   
Hirschmann
    
   ASEPCAYMAN   
    
      CHE      
  
   
 NT$ 
    
 NT$ 
    
US$ (Note 4)
    
 NT$ 
    
US$ (Note 4)
  
Assets
          
Cash and cash equivalents
  
$
118,419
 
  
$
404,573
 
  
$
12,338
 
  
$
1,381,103
 
  
$
42,120
 
Trade and other receivables
  
 
1,336,203
 
  
 
213,592
 
  
 
6,514
 
  
 
87,935
 
  
 
2,682
 
Inventories
  
 
1,079,301
 
  
 
58,564
 
  
 
1,786
 
  
 
112,115
 
  
 
3,419
 
Property, plant and equipment
  
 
745,660
 
  
 
919,648
 
  
 
28,046
 
  
 
421,792
 
  
 
12,863
 
Right-of-use assets
  
 
143,629
 
  
 
-
 
  
 
-
 
  
 
96,894
 
  
 
2,955
 
Others
  
 
167,521
 
  
 
69,707
 
  
 
2,126
 
  
 
197,450
 
  
 
6,022
 
Liabilities
          
Trade and other payables
  
 
(745,653
) 
  
 
(263,095
) 
  
 
(8,023
)
  
 
(200,453
) 
  
 
(6,113
) 
Lease liabilities
  
 
(143,629
) 
  
 
-
 
  
 
-
 
  
 
(96,894
) 
  
 
(2,955
) 
Net defined benefit liabilities
  
 
(204,975
) 
  
 
(158,053
) 
  
 
(4,820
) 
  
 
-
 
  
 
-
 
Others
  
 
(200,276
) 
  
 
(71,848
) 
  
 
(2,191
) 
  
 
(54,264
) 
  
 
(1,655
) 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Fair value of identifiable net assets acquired
  
$
 2,296,200
 
  
$
1,173,088
 
  
$
35,776
 
  
$
 1,945,678
 
  
$
59,338
 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
  d.
Goodwill (gain on bargain purchase) recognized on acquisition
 
   
$
                         
    
$
                         
    
$
                         
    
$
                         
    
$
                         
  
 
 
Hirschmann
 
 
ASEPCAYMAN
 
 
CHE
 
 
 
NT$
 
 
NT$
 
 
US$ (Note 4)
 
 
NT$
 
 
US$ (Note 4)
 
           
Consideration transferred
  
$
 2,317,201
 
  
$
1,096,373
  
  
$
33,436
  
  
$
1,945,678
 
  
$
59,338
 
Less: Fair value of identifiable net assets acquired
  
 
(2,296,200
) 
  
 
(1,173,088
) 
  
 
(35,776
) 
  
 
(1,945,678
) 
  
 
(59,338
) 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Goodwill (gain on bargain purchase) recognized on acquisition
  
$
21,001
 
  
$
(76,715
) 
  
$
(2,340
) 
  
$
-
 
  
$
-
  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
The goodwill from acquisitions mainly represents the control premium. In addition, the consideration paid for acquisitions effectively included amounts attributed to the benefits of expected revenue growth and future market expansions. These benefits are not recognized separately from goodwill because they do not meet the recognition criteria for identifiable intangible assets.
The goodwill recognized on acquisitions is not expected to be deductible for income tax purposes.
As of December 31, 2024, 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 ASEPCAYMAN’s and CHE’s identifiable assets and liabilities.
 
  e.
Net cash outflow on acquisition of subsidiaries
 
   
$
                         
    
$
                         
    
$
                         
    
$
                         
    
$
                         
  
 
 
Hirschmann
 
 
ASEPCAYMAN
 
 
CHE
 
 
 
NT$
 
 
NT$
 
 
US$ (Note 4)
 
 
NT$
 
 
US$ (Note 4)
 
           
Consideration paid in cash
  
$
 2,317,201
 
  
$
725,059
 
  
$
22,112
 
  
$
1,713,092
 
  
$
52,245
 
Less: Cash and cash equivalent acquired
  
 
(118,419
) 
  
 
(404,573
) 
  
 
(12,338
) 
  
 
(1,381,103
) 
  
 
(42,120
) 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net cash outflow on acquisition of subsidiaries
  
$
2,198,782
 
  
$
320,486
 
  
$
9,774
 
  
$
331,989
 
  
$
10,125
  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
  f.
Impact of acquisitions on the results of the Group
The results of operations since the acquisition date were included in the consolidated statements of comprehensive income and were as follows:
 
   
$
                         
    
$
                         
    
$
                         
    
$
                         
    
$
                         
  
 
 
Hirschmann

(For the period
from October 27,
2023 through
December 31,
2023)
 
 
ASEPCAYMAN

(For the period from
August 1, 2024 through

December 31, 2024)
 
 
CHE

(For the period from
August 1, 2024 through

December 31, 2024)
 
 
 
NT$
 
 
NT$
 
 
US$ (Note 4)
 
 
NT$
 
 
US$ (Note 4)
 
           
Operating revenue
 
$
1,017,423
 
 
$
518,026
 
 
$
15,798
 
 
$
825,216
 
 
$
25,167
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net profit (loss)
 
$
46,075
 
 
$
(69,186
) 
 
$
(2,110
) 
 
$
152,594
 
 
$
4,654
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Had the abovementioned business combinations been in effect at the beginning of each annual reporting period, the Group’s pro-forma operating
revenues and profit would have been NT$586,489,731 thousand and NT$37,084,732 thousand for the year ended December 31, 2023, respectively, and NT$597,015,838 thousand (US$18,207,253 thousand) and NT$33,865,233 thousand (US$1,032,791 thousand) for the year ended December 31, 2024, respectively. This pro-forma information is for illustrative purposes only and is not necessarily an indication of the operating revenue and results of operations of the Group that actually would have been achieved had the acquisition been completed at the beginning of each annual reporting period, nor is it intended to be a projection of future results.
In determining the pro-forma operating revenue and profit for the period had each subsidiary been acquired at the beginning of each respective annual reporting period, the Group has calculated the depreciation of property, plant and equipment and the amortization of intangible assets acquired on the basis of the fair values at the initial accounting for the business combination rather than the carrying amounts recognized in the respective pre-acquisition financial statements.
 
  g.
During the third quarter of 2024, the Group has completed identifying the difference between the cost of the investment and the Group’s share of the net fair value of Hirschmann’s identifiable assets and liabilities, and has retrospectively adjusted the comparative consolidated financial statements. The adjustments to the consolidate balance sheet as of December 31, 2023 are summarized as follows:
 
   
December 31, 2023
  
   
Before
Retrospectively
Adjusted
    
After
Retrospectively
Adjusted
  
   
NT$
    
NT$
  
Consolidated balance sheet
    
Trade receivables, net
  
$
99,529,100
 
  
$
99,536,761
 
 
 
 
    
 
 
  
Other receivables
  
$
15,611,917
 
  
$
15,902,053
 
 
 
 
    
 
 
  
Current tax assets
  
$
905,345
 
  
$
875,598
 
 
 
 
    
 
 
  
Inventories
  
$
59,606,188
 
  
$
59,658,354
 
 
 
 
    
 
 
  
Other current assets
  
$
4,959,034
 
  
$
4,973,647
 
 
 
 
    
 
 
  
Property, plant and equipment
  
$
264,812,022
 
  
$
264,871,522
 
 
 
 
    
 
 
  
Goodwill
  
$
52,404,416
 
  
$
52,419,427
 
 
 
 
    
 
 
  
Other payables
  
$
44,242,885
 
  
$
44,556,840
 
 
 
 
    
 
 
  
Current tax liabilities
  
$
9,667,755
 
  
$
9,649,556
 
 
 
 
    
 
 
  
Deferred tax liabilities
  
$
7,598,008
 
  
$
7,703,646
 
 
 
 
    
 
 
  
Net defined benefit liabilities
  
$
4,122,158
  
  
$
4,130,104