FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

June 29, 2006

Commission File Number   001-16125

Advanced Semiconductor Engineering, Inc.
(Exact name of Registrant as specified in its charter)

26 Chin Third Road
Nantze Export Processing Zone
Kaoshiung, Taiwan
Republic of China
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F    X   Form 40-F        

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ______

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ______

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant's "home country"), or under the rules of the home country exchange on which the registrant's securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant's security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes         No    X  

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):
Not applicable

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

ADVANCED SEMICONDUCTOR
ENGINEERING, INC.

Date: June 29, 2006	By:	/s/ Joseph Tung
	Name: Title:	Joseph Tung Chief Financial Officer

Item 1

Advanced Semiconductor Engineering, Inc.

FOR IMMEDIATE RELEASE

Contact:
ASE, Inc.
Room 1901, No. 333, Section 1	Joseph Tung, CFO / Vice President
Keelung Road, Taipei, Taiwan, 110	Freddie Liu, Financial Controller
	ir@aseglobal.com
Tel: + 886.2.8780.5489
Fax: + 886.2.2757.6121
http://www.aseglobal.com

     ADVANCED SEMICONDUCTOR ENGINEERING, INC. REACHES
FINAL SETTLEMENT WITH INSURERS OF NT$8,068 MILLION IN CONNECTION
WITH FIRE ACCIDENT

Taipei, Taiwan, R.O.C., June 28, 2006 - Advanced Semiconductor Engineering, Inc. (TAIEX: 2311, NYSE: ASX) (hereinafter "ASE", or the “Company”) today announced that a final settlement amount has been reached between the Company and the 9 insurers under its Fire Insurance Policy, who together acted as co-insurers, with regards to the fire damage incurred to ASE's Chung-Li plants on May 1, 2005. The 9 co-insurers are Zurich Insurance (Taiwan) Ltd., Fubon Insurance Co., Ltd., Cathay Century Insurance Co., Ltd., Shinkong Insurance Co., Ltd., Mingtai Fire & Marine Insurance Co., Ltd., The First Insurance Co., Ltd., Taiwan Fire & Marine Insurance Co., Ltd., Chung Kuo Insurance Co., Ltd. and South China Insurance Co., Ltd. (hereinafter collectively, the "Co-Insurers"). The final settlement amount, after subtracting the deductible amount from the total insured loss as provided for under the Fire Insurance Policy, is NT$8,068 million. The Co-Insurers already paid ASE an interim payment in the amount of NT$2,300 million in mid-October 2005, which is to be deducted from the final settlement amount. Therefore, the Co-Insurers will pay ASE a final payment of NT$5,768 million in accordance with the provisions of the Fire Insurance Policy. ASE and the Co-Insurers executed a settlement agreement on June 27, 2006 pursuant to the Fire Insurance Policy.

As the settlement amount is now finalized, the Company expects to recognize approximately NT$3,400 million of non-operating income in the second quarter of 2006. The Company is still in the process of repairing certain assets damaged by the fire and determining how much of the losses originally recognized in connection with the fire will be reversed as a result of such repairs. The Company will announce the impact to its earnings when it reports its 2Q06 consolidated financial results, which is scheduled for August 1, 2006.

Safe Harbor Notice
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although these forward-looking statements, which may include statements regarding our future results of operations, financial condition or business prospects, are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on these forward-looking statements, which apply only as of the date of this press release. The words “anticipate”, “believe”, “estimate”, “expect”, “intend”, “plan” and similar expressions, as they relate to us, are intended to identify these forward-looking statements in this press release. Our actual results of operations, financial condition or business prospects may differ materially from those expressed or implied in these forward-looking statements for a variety of reasons, including risks associated with cyclicality and market conditions in the semiconductor industry; demand for the outsourced semiconductor packaging and testing services we offer and for such outsourced services generally; the highly competitive semiconductor industry; our ability to introduce new packaging, interconnect materials and testing technologies in order to remain competitive; our ability to successfully integrate pending and future mergers and acquisitions; international business activities; our business strategy; general economic and political conditions; possible disruptions in commercial activities caused by natural or human-induced disasters; our future expansion plans and capital expenditures; the strained relationship between the Republic of China and the People’s Republic of China; fluctuations in foreign currency exchange rates; and other factors. For a discussion of these risks and other factors, please see the documents we file from time to time with the Securities and Exchange Commission, including our 2005 Annual Report on Form 20-F filed on June 19, 2006.