Amkor completes acquisition of Toshiba's Malaysian semiconductor business

Amkor Technologies has completed the acquisition of Toshiba's semiconductor packaging operation in Malaysia.


Semiconductor packaging and test service provider Amkor Technologies has acquired Toshiba's semiconductor business in Malaysia.

Announced on Wednesday, Toshiba's semiconductor packing and test services branch Toshiba Electronics Malaysia (TEM) will now belong to Amkor. Under the terms of the deal, TEM will now become part of Amkor's portfolio, and Toshiba will also sell relevant intellectual property rights to the firm.

In addition, a manufacturing services agreement now exists between Toshiba and Amkor. Toshiba will purchase and Amkor will supply packing and testing for a number of specific semiconductor products and analog LSI products.

Toshiba will continue to subcontract packing and testing to Amkor for key products, but will also shift its focus to front-end wafer fabrication for power semiconductors by expanding production capabilities in Ishikawa, Japan.

TEM's current focus is on power semiconductors -- used as switches or rectifiers in electronic products. Toshiba says that power semiconductors are a "driver for growth," and by transferring ownership of TEM to Amkor, TEM will be able to "take full advantage of Amkor's large scale production and materials procurement capabilities, and boost the overall efficiency of operations."

Toshiba accounts for 206,000 employees worldwide.