The company anticipates these forecasts. “We are seeing increasing evidence that our investments in advanced package and test technology, together with our strategic entry into Japan, Taiwan and China, have positioned us to outperform the industry as it finally moves into the upcycle,” said James Kim, Amkor’s chairman and CEO. “We undertook these strategic initiatives during the most severe semiconductor downturn in history. We balanced a series of comprehensive cost savings actions with a strategy of investments in key technologies that we believe will provide us with exciting growth opportunities in the years ahead.” In many cases, Amkor is gaining business from competitors. In others, its solutions are encouraging device manufacturers to increase their outsourcing. This may be accelerating. The transaction with Agilent could make this corporation one of its top-10 customers. Some other initiatives are currently under negotiation and if successfully concluded could represent attractive opportunities.
The venture with Toshiba in Japan is proving to be successful. Amkor Iwate represented nearly $200m revenue in 2001, and has consistently exceeded the cost-reduction benchmarks. Other Japanese semiconductor companies have expressed interest in this model. The entry into Taiwan has given the company a strong presence in this region, and is expected to result in market share gains. Amkor believes these could cause Taiwan-related revenue to double. The factory in Shanghai/China is developing ahead of plan. Its position in a premier trade zone makes it a key local supply-chain partner supporting some leading manufacturers.
The system-in-package commerce continues to expand, with wins in applications where SiP technology provides a common linkage. The company expects its SiP-related revenue to triple from $35m. It is also seeing rapid adoption ofits MicroLeadFrame packages, with strong unit growth. It now has more than 30 MLF customers, and expects unit volume to more than triple the 90m assembled last year.The flip-chip business is expected to grow significantly, as improved manufacture enables these packages to become cost-effective for mid-range applications. (gbw)
