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Amkor to Commence Wafer Bumping in Singapore

(Interviews, 28 Feb 2006 )

Amkor Technology has announced that it is establishing wafer bumping operations in Singapore using the same processes currently employed by Amkor's Unitive subsidiary in Taiwan. Amkor's Singapore bump facility is expected to commence operations in the second half of 2006 and will provide, in conjunction with Amkor's existing test operations in Singapore, wafer bump and wafer probe services to support emerging applications on 300 mm wafers at the 90 nm and 65 nm process nodes. Amkor Singapore will offer a full suite of its 300 mm wafer bumping services on a "copy exact" basis with Amkor's existing bumping operation in Taiwan.

"We are taking this step in close collaboration with Singapore's Economic Development Board, Chartered Semiconductor Manufacturing, and other customers who operate in Singapore," said Oleg Khaykin, Amkor's Chief Operating Officer. "As wafer process technology continues to advance below 90 nanometers, IC packaging will increasingly require advanced flip chip and wafer level solutions. This collaboration will complement our existing flip chip capabilities and enhance Amkor's position as the industry's leading provider of turnkey flip chip assembly and test services. Singapore's excellent infrastructure and strong semiconductor manufacturing base were key considerations for Amkor."

"Our production build-out is largely supported by long-term supply agreements for both bump and probe services," said Khaykin. "Our capital contribution toward developing the first phase of this facility is included in our previously announced, preliminary capital expenditure budget for 2006."

"This initiative builds on our Unitive acquisitions and strategic alliance with IBM, and it is designed to help support the growing adoption of flip chip packaging for silicon using IBM and other process technologies in Singapore," said Khaykin. "The strong interest and support we have received for this initiative further underscores the value that Amkor's foundry partners and customers place in our wafer bumping technology and our ability to provide turnkey flip chip services."

"We are grateful for Amkor's confidence in Singapore. In less than two years after establishing its presence here, Amkor is establishing a new wafer bumping operation and pledging to increase its investments in Singapore," said Mr Teo Ming Kian, Chairman of the Singapore Economic Development Board. "Wafer bumping is a key enabling process in the manufacture of chip size packages used in many consumer electronic devices. Amkor's new wafer bumping plant here will help grow this key capability, thereby increasing Singapore's competitiveness in providing complete semiconductor manufacturing solutions."

"Amkor's choice of Singapore for its advanced bumping capabilities, in close proximity to Chartered's manufacturing facilities, is extremely beneficial to our mutual customers," said Mr Chia Song Hwee, President and CEO of Chartered. "The direct benefits are faster post-fab cycle time, better coordination for quality and overall manufacturing efficiencies. Our enhanced collaboration will result in improved synergy and seamless technology integration and coordination for the benefit of customers."

"Since 2004 Amkor has invested nearly $80 million in our Singapore operations, and over the next several years we anticipate our total investment in Singapore will approach $200 million," said Amkor's Oleg Khaykin. "We expect this new bump facility to generate several hundred high value jobs over the next 18 months. We are encouraged by Singapore's rich pool of advanced engineering talent and we envision drawing upon that pool to enhance and extend our R&D capabilities."


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