ASE (Advanced Semiconductor Engineering) and Inotera Memories officially reached a deal to collaborate on 2.5D IC manufacturing and packaging & test services, reported Economic Daily News on August 7. Adding to ASE's System-in-Package (SiP) capabilities, Inotera will provide contract manufacturing services for silicon interposer, an interconnect device on silicon wafer for 2.5D IC solutions. ASE said that the worldwide SiP market is estimated to reach US$700 billion a year and the company's SiP solution will become its major revenue sources in the next three years. Inotera Memories will begin small-scale production next year before expanding its capacity in 2016.