May 2, 2000--Amkor Technology (Nasdaq:AMKR) has completed the acquisition of three semiconductor assembly and test factories (known as K1, K2 and K3) from Anam Semiconductor, Inc. ("ASI").
In addition, Amkor will be increasing its investment in ASI, whose principal operating asset is a world-class semiconductor wafer foundry located in Buchon, Korea.
The entire transaction, (i.e. the asset purchase plus the equity investment in ASI) is valued at approximately $1.4 billion, and is being funded with a combination of $410 million in private equity capital; $259 million in convertible subordinated notes; and $750 million in bank debt.
James Kim, Amkor's Chairman and Chief Executive Officer, noted that "We are delighted to finally complete this landmark transaction. K1, K2 and K3 are among world's finest semiconductor assembly factories. They operate with a broad range of semiconductor package technology and serve what we believe is the industry's largest base of established, fully qualified customers. This transaction solidifies Amkor's position as the world's largest independent provider of semiconductor packaging and test services by assuming direct ownership of all our packaging and test operating assets and enhancing the operating profitability of our core business. In addition, our investment in a restructured ASI provides Amkor with a significant stake in what we believe is a very valuable asset - the ASI wafer foundry."
Amkor now owns and operates seven semiconductor packaging and test facilities consisting of more than 3.5 million square feet of existing manufacturing and support space, with an additional 1 million square feet of manufacturing space available for expansion.
In 1999, these seven factories packaged approximately 4.1 billion semiconductor ICs, representing approximately 6% of the world's consumption of semiconductor chips.
John Boruch, Amkor's president, said, "We expect a very smooth transition, as these factories are already substantially integrated into Amkor's operating systems. Owning these factories should allow us to achieve greater flexibility in managing our manufacturing operations and product development efforts."
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