Taiwanese semiconductor packaging and testing company ASE (Advanced Semiconductor Engineering) and US-based memory chip maker Spansion have signed a memorandum of understanding, whereby the two companies will set up a joint venture to co-own Spansion's China final manufacturing facility, Spansion Suzhou, according to a press release by Spansion.

ASE plans to make an initial investment of no more than US$100 million in the majority stake of the joint venture, which will take over the operation of Spansion Suzhou, an existing facility with a workforce of around 1,100. Via the partnership with Spansion, ASE is projected to extend the scope of its business to include NOR flash memory packaging and testing. ASE expects to close the deal by the end of this year, according to Taiwan's Apple Daily.