World-class Semiconductor Company in Korea Selects SAP

ASE Korea Expects Lower Cost of Ownership with Integrated Solution Combining SAP® R/3® Enterprise and mySAP™ Supply Chain Management

SEOUL, KoreaSEOUL, Korea – May 22, 2003 – SAP Korea today announced that ASE Korea, a global leader in semiconductor packaging and testing, has selected SAP for its integrated enterprise resource planning solution, SAP® R/3® Enterprise, and supply chain management solution, mySAP™ Supply Chain Management (mySAP SCM). To establish their advanced planning system, ASE Korea has adapted SAP’s Advanced Planner and Optimizer (SAP APO) capabilities of mySAP SCM, which offers state-of-the-art planning capabilities to improve supply chain visibility, flexibility, and responsiveness. The ASE Korea win is significant for SAP as an increasing number of Asia companies are realizing the business value of integrated software solutions.

ASE Korea is recognized as the top global company in testing and packaging semiconductor products, including semiconductors for telecommunications, sensors, and camera modules, which require high-precision technologies and extensive experience. Its customers include Motorola, Bosch, Samsung Electronics, and RFMD.

“After evaluating various software options in the industry, we concluded that SAP offered the right solutions and had the best experience to support our cutting-edge semiconductor business,” said Byung-Ha Lee, executive director, ASE Korea. “In the dynamic and complex semiconductor industry, companies need to exchange data with several customers and partners actively and incorporate the results down to the shop floor instantly. With SAP’s ERP and SCM solutions, we will be able to implement best business processes in our internal operations and customer relations to provide the best products our customers want. The most important benefit for us with SAP’s Advanced Planner and Optimizer is increased performance and productivity with our planning and systemized consensus planning tools. With an integrated business solution, we believe we will experience increased productivity and lower total cost of ownership.”

“We are very pleased to be partnering with a global market leader like ASE Korea, one of the best-run businesses in Korea,” said Eui-Noung Han, managing director, SAP Korea. “To supply the chips that drive today’s technology, semiconductor companies must contend with long lead times, global coordination, and complex manufacturing processes. At the same time, they need to develop innovative products, increase speed, reduce cost, and improve efficiency to outpace the competition. In times like these when budgets are tight, we are focused on delivering cross-solution integration capabilities to help solve some of the key business issues our customers are facing. The flexible architecture of SAP solutions, which enables seamless integration with SAP and non-SAP systems, coupled with our thirty years of industry expertise, provides a powerful solution for customers to collaborate with business partners across the supply chain. Over the next few months, we will work closely with ASE Korea so it can respond more quickly to customer demands, reduce costs, reach markets faster and create new business opportunities.”

ASE Korea will deploy SAP’s ERP solution in the areas of financial accounting (FI), controlling (CO), treasury (TR), and production planning (PP), in addition to the SAP Advanced Planner and Optimizer (SAP APO) capabilities of mySAP SCM, including demand planning (DP) and production planning/detailed scheduling (PP/DS). The project is scheduled to be completed by the end of September 2003 and will be implemented by SAP and its partners BeoTech Consulting and Synergy C&C.