Amkor to Install Wafer Bumping Capability to Support Growing Demand for Flip Chip Packaging.

Business Editors/High-Tech Writers

WEST CHESTER, Pa.--(BUSINESS WIRE)--March 10, 2000

Amkor Technology, Inc. (Nasdaq: AMKR), the world's largest provider of contract semiconductor packaging and test services, today announced plans to add wafer bumping capability in its Korean manufacturing plant by the end of 2000 in support of growing demand for Flip Chip packaging. Flip Chip packaging is an alternative die connection technology that replaces today's mainstream wire bonding technology. The wafer bumping process adds conductive interconnects to the silicon die pads eliminating the need for wirebonding and providing improved performance through a much shorter interconnection path.

Driving the growth in Flip Chip packaging is increasing demand for high performance handheld applications such as RF wireless communications and high-speed network systems. Flip Chip die today account for 1.5% of the 60 billion IC circuits produced worldwide today but are expected to grow at an annual compound rate of 48%/year over the next few years. The adoption rate is even higher for the Chip Scale Package (CSP) market segment where Flip Chip is forecasted to grow from 5% of all CSP in 1998 to 25% by 2003 per Prismark Partners.

"Adding our own internal solder bumping capability will enhance Amkor's growing support for flip-chip packages and complements our earlier joint-technology agreements with LSI Logic and Flip Chip technology," said Richard Groover, Amkor vice president and chief technologist for flip-chip technology. "Additionally, since the lion's share of silicon being produced today is still designed for wire bond packaging, we will be offering repassivation and redistribution (the relocation of die bond pads to optimum locations). The internal flip chip bump process enables Amkor to participate actively in the arena for direct chip attach, wafer scale package, and integrated passive device. These new and exciting applications are already demonstrating huge demand, especially with our wireless customers."

The bumping capability provided through this expansion will support large and small die size applications, future pitch requirements, and both lead-based and lead-free interconnection solutions. Amkor currently supports customers with a flip-chip packaging line in its Philippine facilities, and a rapid-prototype flip-chip packaging line at its Chandler, Arizona site. A new flip-chip packaging line is also planned for Korea. While these facilities already handle a wide range of bump technologies today through outside suppliers, or customers supplied bumped chips, Amkor's internal bumping capability will put all flip-chip operations under Amkor control and provide customers with true turn-key Flip Chip solutions. This will ensure Amkor controlled cost reduction performance, quality, and a customer-centric technology development roadmap.

"We are developing optimized packages for low, medium, and high lead-count applications, for both cost-driven and performance-driven applications, and we will offer the best available Flip Chip technologies that have been proven to speed customers' market entry and minimize any reliability concerns and risks," concludes Richard Groover.

This news release may contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ from anticipated results. Further information on risk factors that could affect the outcome of the events set forth in these statements and that would affect the company's operating results and financial condition is detailed in the company's filings with the Securities and Exchange Commission, including the Report on Form 10-Q for the fiscal quarter ended September 30, 1999.

About Amkor Technology

Amkor Technology, Inc. is the world's largest provider of contract microelectronics manufacturing solutions. The company offers semiconductor companies and electronics OEMs a complete set of microelectronic design and manufacturing services, including deep submicron wafer fabrication; wafer probe, characterization and reliability testing; IC packaging design and assembly; multi-chip module design and assembly; and final testing. More information on Amkor is available from the company's SEC filings and on Amkor's web site: www.amkor.com.