Amkor Technology Enters Taiwan Semiconductor Market, Will Acquire Two Established Assembly and Test Companies
In separate transactions, Amkor will acquire Taiwan Semiconductor Technology Corporation (TSTC) of Linkou, and Sampo Semiconductor Corporation (SSC) of Lung-Tang. Both TSTC and SSC signed letters of intent enabling negotiations to proceed. Both agreements are expected to be finalized in April. Terms of the proposed acquisitions were not disclosed. The purchase price will be paid principally through the issuance of Amkor stock. The two companies, which have combined revenues of approximately $100 million (USD), produce many of the high-demand semiconductor package devices required for cell phones, lap and desktop computers, hand-held devices and other popular applications.
``This is a first step in establishing a major Amkor presence in Taiwan,'' said Amkor Chairman and CEO Jim Kim. ``We have had a goal to establish production capability near the vast cluster of semiconductor wafer fabs in Taiwan. Now, we will have two facilities and can begin immediately serving existing customers while we seek new business from among companies using the local wafer fabs,'' Kim said.
TSTC, which began production in 1999, is a joint venture company of which Amkor is a 25 percent partner. Other key joint venture partners include Acer Incorporated, Taiwan Semiconductor Manufacturing Co., Ltd., (TSMC), Chinfon Semiconductor Co., and Scientek International Investment Corporation.
``We have been fortunate to have excellent partners in this JV company and are looking forward to building on the foundation they have established,'' said John Boruch, Amkor President and COO.
Sampo Semiconductor Corporation began production in late 1997 and is principally owned by Sampo Corporation, a major manufacturer of home appliances. The Sampo facility at Lung-Tang, located near the Hsin-Chu Science-based Industrial Park has 270,000 sq. ft. and is expandable to 560,000 sq. ft.
``TSTC and SSC bring to Amkor an impressive list of customers, products, skilled personnel and solid relationships within the Taiwan semiconductor industry,'' Boruch said. ``At the same time, Amkor brings significant new value to existing and potential customers, including more than 30 years of leadership in the assembly and test industry, a wide breadth of products, leading edge technologies and considerable economies of scale.''
These acquisitions are a continuation of Amkor's announced expansion and geographic positioning roadmap. Amkor recently formed a joint venture with Toshiba in Japan, and announced the establishment of a new assembly and test facility near Shanghai, China.
About Amkor Technology:
Amkor Technology, Inc. is the world's largest provider of contract microelectronics manufacturing services. The company offers semiconductor companies and electronics OEMs a complete set of microelectronic design and manufacturing services, including deep sub-micron wafer fabrication; wafer probe, wafer mapping, characterization and reliability testing; IC packaging design and assembly; multi-chip module design and assembly; and final testing. More information on Amkor is available from the company's SEC filings and on Amkor's web site: www.amkor.com.
Forward-Looking Statement: This news release may contain forward-looking statements that involve risk and uncertainty that could cause actual results to differ from anticipated results. Further information on risk factors that could affect the outcome of events set forth in these statements and that would affect the company's operating results and financial condition is detailed in the company's filing with the Securities and Exchange Commission, including the report on Form 10-K.