PowerASE Technology, a Taiwan-based provider of IC packaging/testing services belonging to the Advanced Semiconductor Engineering (ASE) Group, will withdraw its listing on the Emerging Stock Market in Taiwan, according to a decision made by the company's board of directors on December 12.

PowerASE is a joint venture established by ASE and Taiwan-based DRAM maker Powerchip Technology which is PowerASE's largest client. Due to sluggish demand for DRAM, Powechip has transformed its operation by quitting own-brand production of DRAM and shifting to DRAM and other IC foundry service and production of NAND flash.

Because of a large decrease in orders from Powerchip, PowerASE has suffered from shrinking business and therefore sold idle testing equipment to fellow providers including Powertech Technology and Walton Advanced Engineering in mid-2011. With the number of wire bonders dropping from 150 to 50, PowerASE's main operation is to support ASE's packaging of logic ICs currently.

Since ASE has acquired additional shares of PowerASE at NT$18.15 (US$0.60) per share to reach a stake of 99%, PowerASE may apply for merger with ASE if its operation does not turn better, one of the two reasons for delisting from the Emerging Stock Market. The other reason is to pave the way for possible application for listing on the over-the-counter (OTC) at an appropriate time in the future.