Amkor and Grace form alliance.

Amkor Technology, Inc. (Chandler, AZ), a provider of contract microelectronics assembly and test services, and Grace Semiconductor Manufacturing Corp. (Shanghai, China) have signed a letter of intent to form a multi-purpose alliance offering total supply chain solutions for customers in China's rapidly growing microelectronics market. Grace is building a China-based wafer foundry company to serve the worldwide semiconductor market and the growing Chinese integrated circuit market.

Amkor will become Grace's customer, and Grace will provide wafer services to Amkor, who will help Grace develop customers for its foundry. Amkor will also provide Grace with sales, marketing, planning, logistics and IT services in support of its wafer fabrication business. Amkor will later offer turnkey assembly and test solutions for Grace customers through Amkor's factory in Shanghai and potentially other Amkor locations throughout Asia.

Since establishing a factory in Shanghai last year, Amkor has seen growing interest in the China market for developing supply chain solutions. As a result, the company is increasing its footprint in China through a four-fold expansion of a clean room in Pudong, Shanghai, and by evaluating plans to develop a one million sq. ft. facility to accommodate long-term growth.