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Amkor to take over Fujitsu assembly plant in Japan

Posted: 25 Apr 2002 ?? ?Print Version ?Bookmark and Share

Keywords:Amkor Technology? Fujitsu? semiconductor?

Amkor Technology Inc. has announced that it will take over a Fujitsu Ltd. semiconductor assembly factory and make it its second assembly operation in Japan. The two companies signed a non-binding memorandum of understanding calling for Amkor's staged equity purchase of Kyushu Fujitsu Electronics Ltd, a packaging factory located on Kyushu, the island where many semiconductor manufacturers operate fabrication facilities.

As a first step, Fujitsu's package and test factory will be turned into a joint-venture company during the third quarter of this year, and all present employees will be transferred to the venture. Amkor, which reported about $100 million in revenue last year, will hold 67 percent of the venture's equity and Fujitsu will hold the remaining 33 percent. Not yet named, the joint venture will become a 100 percent subsidiary of Amkor after it operates as the joint venture for three years.

Under their agreement, Fujitsu will place orders with the joint venture for five years, and Amkor will guarantee the availability of manufacturing services to Fujitsu over that period.

Amkor followed the same course when it acquired its first assembly facility in Japan from Toshiba Corp. in December 2000. Toshiba agreed to transfer its packaging operations in Iwate to Amkor in three years, and the companies established a joint venture in which Amkor holds a 60 percent share. Amkor will own the company outright in January 2004.

Fujitsu operates volume assembly plants in Kagoshima, Fukushima and Miyagi. The Kagoshima unit focuses on compact chip packaging such as bump chip carriers and stacked multichip packages. Fujitsu's other packaging operations focus on fine-pitch, high-pins count devices.

"Compact packages are used in a wide range of applications and will face increasing demand. In this field, the two companies agreed to collaborate," a Fujitsu spokeswoman said.

Reinforced operations

Amkor is reinforcing its operations in Japan, anticipating the industry's continuing move to an outsourcing model. The company purchased Citizen's assembly operation in Iwate this past January and merge it into Amkor Iwate, the former Toshiba operation. That acquisition brought Amkor plastic BGA packaging technology that had been codeveloped by Citizen and Motorola in the early 1990s.

"The addition of this joint venture company with Amkor Iwate, our outsourcing venture with Toshiba, creates a second powerful operational presence in Japan and allows Amkor to provide Japanese semiconductor manufacturers with an unmatched array of outsourced assembly and test services," said John Boruch, Amkor's president and chief operating officer.

Fujitsu expects the deal will help it lower operating costs and lessen the capital requirements of its semiconductor business, the company spokeswoman said.

? Yoshiko Hara

EE Times

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