• Depreciation, amortization and rental expense associated with our testing operations amounted to NT$1,739 million during the quarter, up from NT$1,657 million in 2Q16.
• In 3Q16, gross margin for our testing operations was 38.9%, up by 2.1 percentage point from 2Q16.
• Capital expenditures for our testing operations amounted to US$57 million during the quarter.

EMS Operations

• In 3Q16, gross margin for our EMS operations was 10.0%, down by 0.3 percentage points from 2Q16.
• Capital expenditures for our EMS operations amounted to US$10 million during the quarter.

Substrate Operations

• PBGA substrate manufactured by ASE amounted to NT$2,344 million for the quarter, down by NT$133 million, or by 5% from 2Q16. Of the total output of NT$2,344 million, NT$805 million was from sales to external customers.
• Gross margin for substrate operations was 14.8% for the quarter, down by 4.0 percentage points from 2Q16.
• In 3Q16, our internal substrate manufacturing operations supplied 27% (by value) of our total substrate requirements.

Customers

IC ATM consolidated Basis

• Our five largest customers together accounted for approximately 34% of our total net revenues in 3Q16, compared to 35% in 2Q16. No customer accounted for more than 10% of our total net revenues in 3Q16.
• Our top 10 customers contributed 50% of our total net revenues during the quarter, compared to 51% in 2Q16.
• Our customers that are integrated device manufacturers, or IDMs, accounted for 36% of our total net revenues during the quarter, compared to 33% in 2Q16.

EMS Basis

• Our five largest customers together accounted for approximately 80% of our total net revenues in 3Q16, compared to 76% in 2Q16. One customer accounted for more than 10% of our total net revenues in 3Q16.
• Our top 10 customers contributed 90% of our total net revenues for the quarter, compared to 88% in 2Q16.

OUTLOOK

Based on our current business outlook and exchange rate assumptions, management projects overall performance for the fourth quarter of 2016 to be as follows:

• IC ATM capacity should be flat quarter over quarter;
• IC ATM blended utilization rate should decrease 0-5% sequentially;
• IC ATM gross margin should be similar with prior quarter;
• EMS business capacity should be flat quarter over quarter; blended utilization rate should increase 10-15% quarter over quarter;
• EMS gross margin should be consistent with our gross margin during the first half of 2016.

About ASE, Inc.

ASE, Inc. is among the leading providers of packaging services and testing services, including front-end engineering testing, wafer probing and final testing services.  With advanced technological capabilities and a global presence spanning Taiwan, China, Korea, Japan, Singapore, Malaysia and the United States, ASE, Inc. has established a reputation for reliable, high quality products and services.  For more information, please visit our website at http://www.aseglobal.com.

Safe Harbor Notice

This press release contains "forward-looking statements" within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended, including statements regarding our future results of operations and business prospects.  Although these forward-looking statements, which may include statements regarding our future results of operations, financial condition or business prospects, are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on these forward-looking statements, which apply only as of the date of this press release.  The words "anticipate," "believe," "estimate," "expect," "intend," "plan" and similar expressions, as they relate to us, are intended to identify these forward-looking statements in this press release.  Our actual results of operations, financial condition or business prospects may differ materially from those expressed or implied in these forward-looking statements for a variety of reasons, including risks associated with cyclicality and market conditions in the semiconductor or electronic industry; changes in our regulatory environment, including our ability to comply with new or stricter environmental regulations and to resolve environmental liabilities; demand for the outsourced semiconductor packaging, testing and electronic manufacturing services we offer and for such outsourced services generally; the highly competitive semiconductor or manufacturing industry we are involved in; our ability to introduce new technologies in order to remain competitive; international business activities; our business strategy; our future expansion plans and capital expenditures; the uncertainties as to whether we can complete the acquisition of 100% of Siliconware Precision Industries Co., Ltd. shares not otherwise owned by ASE; the strained relationship between the Republic of China and the People's Republic of China; general economic and political conditions; the recent global economic crisis; possible disruptions in commercial activities caused by natural or human-induced disasters; fluctuations in foreign currency exchange rates; and other factors.  For a discussion of these risks and other factors, please see the documents we file from time to time with the Securities and Exchange Commission, including our 2015 Annual Report on Form 20-F filed on April 29, 2016.

Supplemental Financial Information

IC ATM Consolidated Operations