Toshiba, Nakaya, Amkor Team on Joint System LSI Assembly, Test Service

Nakaya Microdevices Corporation (NMD), Amkor Technology, Inc. (Nasdaq: AMKR) and Toshiba Corporation (TOKYO: 6502) announced that they have signed a non-binding memorandum of understanding expressing their intent to form a joint venture in Japan that will provide system LSI assembly and testing services. The structure, terms and amounts of each party’s contributions and other support for the joint venture have not yet been determined. The commencement of joint venture operations is targeted for October 1, 2009 but is subject to the negotiation of definitive agreements, due diligence and the receipt of any necessary government approval.

Toshiba plans to transfer to the joint venture the system LSI back-end process operations of its Japan-based, wholly owned semiconductor packaging company, Toshiba LSI Package Solutions Corporation (TPACS), including TPACS’s Oita Works and its system LSI business at Fukuoka Works. Toshiba also plans to transfer to the joint venture wafer probing equipment installed at its Oita Operations and Kitakyushu Operations. It is anticipated that NMD will have a majority position in the joint venture business. Amkor is expected to provide its manufacturing expertise, sales support, technical assistance, planning and procurement services and other support to the joint venture.

This collaboration will support Toshiba Group in promoting an outsourcing system for the LSI back-end process, and in accelerating the comprehensive restructuring of its semiconductor business under the Action Program to improve profitability that the company announced in January this year. It will also allow NMD and Amkor to enhance and strengthen their relationships with a strategic customer and to further grow their respective semiconductor assembly and testing businesses.

About Nakaya
Founded in 1970 in Oita, Japan, Nakaya Microdevices Corporation has served as an independent provider of semiconductor assembly and test for nearly 40 years.

About Amkor
Amkor is a leading provider of semiconductor assembly and test services. The company offers semiconductor companies and electronics OEMs a complete set of microelectronics design and manufacturing services.

About Toshiba
Toshiba is a world leader and innovator in pioneering high technology, and a diversified manufacturer and marketer of advanced electronic and electrical products spanning information & communications equipment and systems; digital consumer products; electronic devices and components; power systems, including nuclear energy; industrial and social infrastructure systems; and home appliances. Toshiba was founded in 1875, and today operates a global network of more than 740 companies, with 198,000 employees worldwide.