Amkor Expanding MicroLeadFrame Capacity to Meet Market Demand.

Business Editors & High-Tech Writers

CHANDLER, Ariz..--(BUSINESS WIRE)--Sept. 23, 2002

Amkor Technology (Nasdaq:AMKR) is again expanding its MicroLeadFrame(TM) capacity. First developed in 1996, this revolutionary semiconductor package solution became Amkor's most successful product launch when introduced in 1999, with production reaching a million units per week 3 months after qualification. By the fourth quarter of 2002, Amkor expects to be capable of producing more than 75 million units per month.

"Following an impressive start in RF power amplifier applications, our MLF package is rapidly becoming an industry standard for a host of low pin count wireless applications," said Sean Crowley, Amkor's vice president of advanced leadframe products. "MLF has quickly become a critical package solution for cell phones, wireless LAN and Bluetooth. The cellular market is increasingly moving to MLF because of its superior electrical and thermal performance characteristics and outstanding price / performance. The markets for Bluetooth and wireless LAN (which includes the 802.11 a, b and g standards) are still in their infancy and poised to explode. We expect to see rapid adoption of MLF solutions that are ideally suited to solve the thermal and electrical challenges that are associated with high-frequency RF applications."

MicroLeadFrame(TM) is Amkor's version of a semiconductor package with the generic nomenclature of QFN, which stands for "quad, flat, no-lead." QFN's are "leadless" leadframe packages. In traditional leadframe packages, a common example being the SOIC, the lead comes out of the package and is formed into a gullwing shape to create solderable feet that are mounted onto the printed circuit board. With QFN's, the lead is flush on the bottom of the molded package, which is soldered directly onto the board.

QFN packages should continue to enjoy rapidly growing market acceptance. According to TechSearch International, the worldwide QFN market will grow from an estimated 900 million units in 2002 to more than 2 billion units in 2005.

Amkor's MicroLeadFrame(TM) is the clear industry leader, with more than 40% share of the QFN market. One of Amkor's most successful new package families, MLF has seen remarkable growth since its introduction. Unit shipments were a modest 13 million in 1999 and are expected to surpass 350 million in 2002 and 600 million in 2003.

"Since early 2000, we've increased our MLF capacity ten-fold, and we expect to be capable of producing more than 75 million units per month by the fourth quarter of 2002," said Crowley. "We now have more than 50 customers forecasting over 200 different MLF line items, with many more devices presently in design development for MLF solutions."

"MLF represents an outstanding low cost option for a broad range of wireless applications below the 50 pin count range. Amkor's design, engineering and production know-how has positioned us as the leader

in the development and commercialization of MLF package technology," said Crowley.

The broad adoption of MLF packaging has positive strategic implications for Amkor. For example, earlier this year, Amkor expanded its business relationship with Philips Semiconductors to include MLF. Under a multi-year agreement, Philips will have access to MLF technology, and Philips and Amkor will embark on a co-production effort to assemble all Philips semiconductor ICs that have been enabled by Amkor's MLF technology, including Philips' recently introduced DQFN package, the world's smallest logic IC package.

"As we continue to create manufacturing efficiencies through high volume production, we can expect to see standard logic and linear products gravitate toward MLF over time," said Crowley. "The market for these products is enormous, with nearly 50 billion SO (small outline) packages produced in 2002, growing to 73 billion in 2006, according to Electronic Trends Publications. We believe a reasonable percentage of SO packages could move to MLF format, which should significantly expand the market for MLF."

About Amkor

Amkor Technology, Inc. is the world's largest provider of contract semiconductor assembly and test services. The company offers semiconductor companies and electronics OEMs a complete set of microelectronic design and manufacturing services. More information on Amkor is available from the company's SEC filings and on Amkor's web site: www.amkor.com.