September 30, 2011 — Toshiba Corporation (TOKYO:6502.t) signed a non-binding memorandum of understanding for Amkor Technology, Inc. (Nasdaq:AMKR) to acquire Toshiba Electronics Malaysia Sdn. Bhd. (TEM), which is a semiconductor assembly operation in Malaysia. Amkor will also have the right to license certain related intellectual property rights.
TEM performs assembly and test of discrete and analog semiconductors, with a main focus on power semiconductors in recent years. The facility opened in 1973.
Toshiba sees power semiconductors as a growth driver for its business. Transferring TEM ownership to Amkor will bring TEM into a large-scale network of packaging/materials procurement capabilities. Toshiba will subcontract power semiconductor assembly and test to TEM. The TEM operations will become more efficient and Toshiba will benefit with a better back-end cost structure for power semiconductor assembly, the companies report.
Toshiba plans to focus its resources on front-end wafer fabrication for power semiconductors, reinforcing production at Kaga Toshiba Electronics Corporation in Japan