Exhibit 4(y)

                               SERVICE AGREEMENT


PARTIES:                   ASE (U.S.) INC. ("ASE US")
                           (a California corporation)

                           ASE (Chung-Li) Inc. ("ASECL")
                           (a Taiwan Corporation)

DATE:    July 1, 2000


ASECL hereby retains ASE US to be its Service Agent to provide after sales
service and sales support ("Services") to its Europe and North America
customers ("Customers") for present and future products and services as
specified by ASECL as follows

1.   Service to rendered

(a)  To facilitate market information collection, Customer and business
     identification, and Customer inquiry dissemination, and;

(b)  To liaise with ASECL and Customers re price, delivery and other key terms
     of the sales contract as ASECL may from time to time specify in writing,
     and;

(c)  To monitor sales contract performance by the Customers, including
     acceptance of delivery, payments, etc., and;

(d)  To provide after sales services including problem solving, capacity
     planning coordination and other items as may be necessary.

2.   Compensation to ASE US

For services hereunder, ASECL will monthly compensate ASE US as follows:

(a)  10% of ASE US's monthly incurred services associated cost and expenses
     (excluding bonus) plus 10%.

(b)  Upon payment request, ASE US is to submit detailed monthly expense report
     certified by its Financial Manager for accuracy, and;

(c)  The compensation agreement is valid for one year and is subject to annual
     revision accepted by both parties.

3.   Compensation from ASE US

ASE US agrees to pay a reasonable portion of ASECL employee's traveling
expenses incurred in the United States or Europe, when the trip is deemed
necessary by ASECL to assist ASE US in providing its services hereunder.

4.   Term of Agreement

This Agreement is effective from July 1, 2000 and shall expire on June 30,
2001, unless earlier terminated by (i) mutual agreement or (ii) ASECL on at
least 30 days' prior written notice with or without causes.

5.   Representations and Covenants


<PAGE>


(a)  ASE US agrees to perform its obligations hereunder to the extent
     permissible by law and the sales contracts between ASECL and the
     Customers.

     ASE US will not enter into any contract or agreement, nor engage in any
     activities, that would result in a conflict with ASE US's duties under
     this Agreement.

     With the terms of this agreement, ASE US shall not have the authority to
     make any commitments whatsoever on behalf of ASECL, as agent or otherwise,
     or to bind ASECL in any respect.

(b)  Each party will provide to the other on a regular basis such information
     as may be required to enable the other party to be assured of compliance
     with this Agreement.

(c)  Unless required by laws, all confidential information received or learned
     by ASE US relating to ASECL or its business and products shall be kept in
     confidence by ASE US and neither used by ASE US nor disclosed to others
     for any purpose inconsistent with this Agreement.

(d)  ASE US shall use ASECL trademark only as ASECL may authorize from time to
     time, and ASE US shall not claim any proprietary right to or interest in
     such trademarks.

6.   Miscellaneous

This Agreement shall be governed by the laws of the Republic of China ("ROC").
In case of any disputes arising from or in connection with this Agreement, the
parties hereto consent to submit to the non-exclusive jurisdiction of the
Taipei District Court.

Without the prior written consent of ASECL, ASE US shall not assign or transfer
any of its rights or obligations hereunder to any other person.

This Agreement can be amended or modified only in writing signed by the parties
hereto. Any communication or notice made hereunder shall be in writing and sent
by way of (i) hand delivery, (ii) postage prepaid registered air mail, or (iii)
facsimile to the address as follows:

ASE US:                                     ASE (Chung-Li) Inc.:
Address:                                    Address:
2880 Zanker Road, Suite 106,                550, Chung-Hwa Road Section 1,
San Jose, CA  95134, USA                    Chung-Li, Taiwan, R.O.C.

Telefax No:  408-432-0440                   Telefax No:  886-3-462-8658

The notice or communication shall become effective (i) upon delivery if sent by
hand delivery, (ii) upon the dispatch if sent by facsimile and confirmed by
writing and (iii) upon the fifth days later than the post date if sent by air
mail.

This Agreement shall in no event be construed to establish a sales agency
relationship between ASECL and ASE US.

IN WITNESS WHEREOF, the parties hereto hereby have duly executed and delivered
this Agreement as of the date and year first written above.


ASE (Chung-Li) Inc.                          ASE US


By /s/ S. S Lee                              By /s/ Y. C. Hsu
  ----------------------------                 ---------------------------
  Name:  S.S. Lee                              Name:  Y. C. Hsu
  Title: President                             Title: General Manager