Amkor Technology Completes Acquisition of K4 Packaging Plant Amkor Now Owns Premier Semiconductor Packaging Complex.WEST CHESTER West Chester, borough (1990 pop. 18,041), seat of Chester co., SE Pa., W of Philadelphia; inc. 1799. Primarily residential, West Chester was long the trade and processing center for an agricultural region that is now mainly suburbs. , Pa.--(BUSINESS WIRE)--May 17, 1999--
Amkor Technology Amkor Technology, Inc. (NASDAQ: AMKR) is a high-tech semiconductor product manufacturer that includes Intel and IBM among its primary customers. Previously headquartered in West Chester, Pennsylvania, United States, Amkor recently announced that it will move to Chandler, , Inc. (Nasdaq:AMKR AMKR Amkor Technology ) said today that it has completed the acquisition of the K4 semiconductor packaging plant from Anam Semiconductor, Inc. for approximately $582 million, including the assumption of $7 million in employee benefit liabilities.
The transaction was funded with the proceeds of Amkor's recently completed offering of $625 million in long term debt.
With more than 1,000,000 square feet of total facility space, and nearly 800,000 square feet of manufacturing / administrative space, K4 is one of the world's largest semiconductor packaging plants. Located on a 100-acre site in Kwangju, South Korea, K4 has the infrastructure already in place to accommodate an additional 1.6 million square feet of manufacturing space when fully expanded.
"Amkor's ownership of this world class facility has important strategic benefits," said Amkor's President, John Boruch. "Often referred to as a city-in-a-city, K4 is a state-of-the-art, fully expandable complex that assembles some of the most technologically advanced semiconductor devices in the world, including many of our advanced leadframe and laminate laminate,
n a thin slice of porcelain or plastic fabricated in a dental lab, which is cemented to the front of the teeth to cover gaps, whiten stained teeth, or reshape chipped or broken teeth. package products. According to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. industry analysts, the market for laminate package products is projected to experience significant growth over the next several years due to the ongoing miniaturization min·i·a·tur·ize
tr.v. min·i·a·tur·ized, min·i·a·tur·iz·ing, min·i·a·tur·iz·es
To plan or make on a greatly reduced scale.
min of semiconductor design and increasing integration of functions within a package. We expect Amkor to be a significant participant in that market growth as it develops," added Mr. Boruch
"K4's existing physical plant, together with its fully-expandable configuration, provides Amkor with the capability to accommodate the rapidly growing needs of the marketplace for advanced semiconductor packaging products," continued Mr. Boruch. "We are delighted to welcome the more than 1700 highly trained employees of K4 into the Amkor family."
"With the acquisition of K4, Amkor now owns and operates four packaging and test factories, including three in the Philippines," noted Mr. Boruch. "While we will continue to subcontract a sizable portion of our packaging and test business under a long-term supply agreement with Anam Semiconductor, the acquisition of K4 puts more of our revenue within our wholly owned factories. As production volume at K4 continues to ramp, we expect to increase our manufacturing margins, since the gross margin on K4-derived revenue will no longer be subject to the contractual limitations of the supply agreement."
"While we are incurring considerable interest expense with this acquisition, K4 is expected to be a substantial contributor to Amkor's EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become during 1999," continued Mr. Boruch.
Amkor's Executive Vice President, Michael D. O'Brien Michael D. O'Brien (b. 1948) is a Roman Catholic author, artist, and frequent essayist and lecturer on faith and culture, living in Combermere, Ontario, Canada. Born in Ottawa, he is self-taught, without an academic background. , will have overall responsibility for Amkor Technology Korea. Dan Sparks joins Amkor Technology Korea as Director of Finance. Mr. Sparks will be based in Kwangju and will be responsible for managing the development of financial accounting and reporting systems at K4.
The K4 facility opened in 1996 and commenced volume production in 1997. K4 has been building manufacturing volume throughout 1997 and 1998, during which time several of the world's leading semiconductor companies have qualified K4 for package production. Amkor expects to accelerate the ramp up Ramp Up
To increase a company's operations in anticipation of increased demand.
A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product.
See also: Demand, Economies of Scale of production at K4 during the next 12 to 24 months to meet projected market requirements.
Amkor Technology, Inc. is the world's largest provider of contract semiconductor packaging and test services. The company offers a complete set of semiconductor services including deep submicron wafer fabrication Wafer Fabrication is a procedure composed of many repeated sequential processes to produce complete electrical or photonic circuits. Examples include production of radio frequency (RF) amplifiers, LEDs, optical computer components, and CPUs for computers. , wafer probe testing, IC packaging assembly and design, final testing, burn-in, characterization and reliability testing.
More information on Amkor Technology, Inc. is available from the company's SEC filings and on Amkor's web site, http://www.amkor.com. Amkor is traded on the Nasdaq Stock Market Nasdaq stock market
The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. under the symbol AMKR.
The statements in this news release may contain forward-looking statements - such as (1) the belief that the market for laminate products is expected to experience significant growth over the next several years; (2) the expectation that Amkor will be a significant participant in the market growth for laminate products; (3) the expectation that Amkor will increase manufacturing margins at K4; (4) the expectation that K4 will be a significant contributor to Amkor's EBITDA during 1999; and (5) we will accelerate the ramp up of production at K4 during the next 12 to 24 months - that involve risks and uncertainties that could cause actual results to differ from anticipated results.
Further information on risk factors that could affect the company's results is detailed in the company's filings with the Securities and Exchange Commission, including the Report on Form 10-K Form 10-K
A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information.
See 10-K. for the fiscal year ended December 31, 1998.