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Amkor buys Toshiba Electronics Malaysia

Posted: 01 Aug 2013 ?? ?Print Version ?Bookmark and Share

Keywords:semiconductor packaging? test? manufacturing?

Amkor Technology has finalised its acquisition of Toshiba Corporation's semiconductor packaging operation in Malaysia, both companies announced today. Under the manufacturing services agreement, Toshiba Electronics Malaysia (TEM) has agreed to supply packaging and test services for certain discrete semiconductor products and analogue LSI products.

TEM was established in 1973 and has since expanded its packaging operations of discrete and analogue semiconductors. Recently, TEM has been primarily manufacturing power ICs. Toshiba positions power semiconductors as a driver of growth for its semiconductor business and seeks to maximise cost competitiveness across its front- and back-end operations.

Transferring ownership of TEM to the Amkor group will allow TEM to take full advantage of Amkor's large scale production and materials procurement capabilities and boost the overall efficiency of its power semiconductor operations.

Toshiba will continue to subcontract power semiconductor packaging and test to Amkor 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 facility in Ishikawa Prefecture, Japan.

Amkor expects the transaction to further strengthen its relationship with Toshiba and to grow its semiconductor packaging and testing business. Amkor plans to leverage the technology and scale of this new factory to attract leading power discrete customers to Amkor.

The acquisition was derailed back in 2011 when severe flooding in Thailand affected the operations of TEM and Amkor postponed discussions.

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