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Technology Stocks : Amkor Technology Inc (AMKR) -- Ignore unavailable to you. Want to Upgrade?

To: nickscores who wrote (178)	4/27/1999 2:03:00 AM
From: tech101	Respond to of 1056

From S&P Credit Rating on Amkor: "While the chip assembly outsourcing industry is expected to grow, semiconductor still retain almost 80% of total industry packaging capability in-house, potentially impacting assemblers' revenues and margins in a sector recession." Let's see if the trend of outsourcing continues and the world-wide semiconductor in-house packaging reduces from 80% to 76% what it means to Amkor: Since about 5/6 of Amkor revenue comes from Packaging & Testing (the remaining 1/6 comes from wafer), and Amkor owns about 1/3 of the outsourcing market, that means Amkor currently owns 1/3 * 20% = 6.67% of the world-wide P*T market. If Amkor can capture 1/3 of the increased outsourcing revenue, that is about 17% of revenue increase for Amkor and even higher for net profit because of the higher utilisation. That means about an extra $350 million revenue increase -- in addition to its projected $2.1 billion total revenue in 1999.