Date: 30/09/2011

Amkor to acquire Toshiba's Malaysian semiconductor assembly and test ops

Amkor Technology Inc. to acquire Toshiba Electronics Malaysia Sdn. Bhd. ("TEM"), Toshiba's semiconductor assembly operation in Malaysia, together with a license to Amkor for certain related intellectual property rights. Toshiba and Amkor expect to complete the transaction by early January 2012.

Established in 1973, TEM has steadily expanded the scale of its assembly operations, primarily of discrete and analog semiconductors. In recent years, its main product has been a power semiconductor.

Toshiba said it will continue to subcontract power semiconductor assembly and test to TEM as an important source of key products. As it does so, Toshiba will shift its focus and resources to front-end wafer fabrication for power semiconductors by reinforcing production capabilities at Kaga Toshiba Electronics Corporation, Toshiba Group's discrete semiconductor production base in Japan's Ishikawa Prefecture.

Amkor says it believes that TEM will provide an excellent platform for increasing its presence in the power discrete market, where Amkor estimates there is unmet customer demand for outsourced assembly and test services.