Exhibit 4(r)

                      Lease Agreement for Factory Building


     This lease agreement (hereinafter referred to as the "Agreement") is made
and entered into by and between Advanced Semiconductor Engineering Inc.
(hereinafter referred to as "Party A") and ASE Test Inc. (hereinafter referred
to as "Party B").

     Party A hereby leases 11/F and part of 10/F of the factory building
located at 66, Chin Sixth Road, Nantze Export Processing Zone, Kaoshiung City
to Party B. The Agreement is hereby entered into as follows:

     1.   1)   Leased Land Designation: 11/F and part of 10/F of the factory
               building located at 66, Chin Sixth Road, Nantze Export
               Processing Zone, Kaoshiung City (Construction No.:01444-000, Lot
               No.:0723-0000 of 2nd Subsection of Hoping Section of Nantze
               District). Area: 7,527m2, with facilities attached.

          2)   Rental Charge: NT$480,000.00 per month, with business tax
               excluded.

     2.   The rental period shall be one year from October 1, 2000 to September
          30, 2001.

     3.   In view of the existing factory building and the facilities attached
          thereto, apart from the structural fixtures (inner and outer walls,
          floors, existing water pipes and electricity circuits) of the
          building to be responsible by Party A, Party B shall be responsible
          for the maintenance of the building and repair any damages incurred
          thereto.

     4.   Both Party A and Party B agree that the date from which the
          calculation of the rental shall start is the date hereof.

     5.   In case where Party B adds other necessary production facilities to
          the premise, such facilities will be in the possession of Party B,
          who shall remove such facilities from the premise and return the same
          to Party A upon expiry of the lease term at its existing conditions.
          Party B shall not engage in any work involving the structural
          alteration of the building during the term of the lease without the
          permission of Party A.

     6.   Upon the commencement of the lease term, Party A shall bear all
          charges relating to the water and electricity meters and water and
          electricity consumption. Thereafter Party A shall calculate each
          party's pro rata share of the charges according to their own water
          and electricity meters and, in the absence of an express charge
          attribution, according to the usage ratio of the leased area of each
          party and shall collect from Party B its share of the charges. Party
          A shall pay the land rent and property tax.

     7.   From the date hereof, Party A shall promptly submit to Party B any
          information needed for the application to the relevant entities (e.g.
          management office, power company etc.) for the alteration of user's
          name.

     8.   Party A shall issue to Party B an invoice each month during the lease
          term and Party B shall remit the rental of the immediately preceding
          month to the company account designated by Party A within 10 days
          upon receipt of the invoice.

     9.   Party A warrants that it has the legal proprietary right to the
          leased premise which it hereby leases to Party B and that Party B's
          leasehold interest in the leased premise shall not in any way be
          affected by any other encumbrance created by Party A or any other
          events, otherwise Party A shall compensate Party B for any loss
          incurred thereon and pay Party B an amount equal to three month's
          rental.

     10.  The leased premise is possessed by Party A, who shall buy property
          insurance for it and Party B shall buy insurance for its own movables
          and facilities inside the premise.


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     11.  If Party B fails to pay the rental when due, it shall pay additional
          fines as below:

          1)   an additional default amount of 5% of the rental for an overdue
               more than one month and less than two months;

          2)   an additional default amount of 10% of the rental for an overdue
               more than two months and less than three months;

          3)   forfeiture of the deposit and termination of the Agreement for
               an overdue more than three months.

     12.  The deposit of the Agreement shall be NT$1,000,000.00, to be remitted
          by Party B on the commencement date of the lease term to the bank
          account designated by Party A. Such amount shall be returned without
          interest by Party A to Party B upon expiry of the lease term.

     13.  Upon expiry of the Agreement and under reasonable conditions, Party B
          shall have preferred rights to lease or purchase the leased premise.
          In case where Party B demands early termination before the expiry of
          the Agreement, it shall give three month's prior written notice to
          Party A and shall pay Party A an amount equal to three months' rental
          upon the early termination as a compensation provided that Party A
          shall return the deposit without interest to Party B. The above
          condition shall also apply to Party A if it demands an early
          termination.

     14.  If Party A demands early termination within nine months from the
          commencement for the lease term, Party A shall, in addition to the
          amount equal to three months' rental, pay Party B such amount equal
          to the value shown in Party B's account regarding all refurbishing,
          partition, renovation work done within the lease term.

     15.  The Agreement is in duplicates, each of which shall be held by Party
          A and Party B respectively. The Agreement shall become effective from
          the date hereof. Any disputes arising from the Agreement shall, in
          the first instance, be governed by the local court of Kaoshiung.

     Contracting Party (Party A)

          Advanced Semiconductor Engineering Inc.

          Supervisor: Feng Mei-jean

          Address: 66, Chin Sixth Road, Nantze Export Processing Zone,
                   Kaoshiung City

      Contracting Party (Party B)

          ASE Test Inc.

          Supervisor: Jason C.S. Chang

          Address: 10, West Fifth Street, Nantze Export Processing Zone,
                   Kaoshiung City

     September 18, 2000