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Growth rate is far important than profit margin for the long term operation of the business. It makes a deep impression from one economy cycle to another. For those enterprises which performed better both growth and profit than the competitors, there are around 41 % kept in good shape in the next cycle. More than that, for those with higher profit and lower growth companies are with twice chance to be out of game over those companies with low profit while keep higher growth rate. The most concerned issue in the semiconductor packaging industry for the past decade is that ASE turned around and became at the top in both market share and profit margin. There are two main factors which can be defined as quantitative and non quantitative. For the quantitative one is that ASE keeps on higher Research and Development ratio than SPIL which is the main competitor in Taiwan. From year 2001 to 2006, the sales volume of ASE is around 1.18 times, while the investment is 3.16 times over SPIL. More than that, the RD investment gap is become 4 times in 2010 which can be defined as the copper wire gap. As for the non quantitative factor is the highly vertical integration of ASE group. The story behind is that ASE keep or in most time enhance the core competence after each mergers and acquisition. The integration covers from vendor to customer. There are four main features of such integration. First, all the integration is for the good on the assembly and testing which is the core business of the group. Second, it acquired and merged those enterprises which are with smaller scale than itself. Third there is no significant side effect in either business culture or legal aspects. The last, the integration sometime may help customer to gain more business. Key Words: Growth, Profit, ASE, SPIL
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