Advanced Semiconductor Engineering Inc (2311.TW) denied a local media report that it and Toshiba Corp, Japan's largest chipmaker, plan to set up a joint venture to handle packaging and testing of NAND flash memory chips.

"It is nothing but speculation," said ASE spokesman Freddie Liu. "We are always in discussions with potential partners, but to date there has been no concrete progress to speak of."

The Commercial Times reported today that ASE, the world's largest independent provider of chip-packaging and testing services, would control a venture to be established in a former NEC Corp compound in Japan.

The paper said the companies would sign contracts later this year and the venture would become operational in the first half of 2009.