AMKOR'S CHINA FACTORY READY FOR CUSTOMER QUALIFICATION
Just five months after its lease was signed, Amkor
Technology's (Nasdaq - AMKR) packaging and test facility at
the Waigaoqiao Free Trade Zone near Shanghai, China is ready
to begin customer qualification and test services.
Since the mid-January lease signing, Amkor has completed all
licensing, environmental impact studies and infrastructure processes
including water, gas and electric connections and constructed
the first module a Class 10K clean room complete with packaging
and test equipment. An initial staff of engineers, technicians
and operators, most of which are local residents, has been hired
and trained. Amkor has also established a supply chain management
system that ensures a ready supply of raw materials and equipment
is available to the facility on a moment's notice.
"We have been able to move very fast on this facility because
we have had full cooperation from local government officials,"
said Gary Breton, senior vice president of Amkor's North Asia
Operations. "Amkor Technology is strategically located
in the Waigaoqiao Free Trade Zone. Enthusiastic support of local
officials, available land for expansion, favorable tariff relief,
and an expedited customs process, have combined to make our
start up in China very smooth."
The company has completed internal qualifications on both test
and assembly processes, and is beginning customer qualification
and ramping volume production of its packaged products. The
first test programs begin this month with volume ramping in
Q3.
Production of Amkor's ChipArray(r) Ball Grid Array (CABGA) and
Low Profile Quad Flat Pack (LQFP) packages is scheduled to begin
in Q3, ramping to volume production in Q4 2001. To accommodate
the ramp-up, the facility will be staffed for 24-hour operations
seven days a week. The plant's initial production is destined
for the Chinese cellular telephone market.
The facility is just the beginning of the company's expansion
into China. "Interest in the facility is very high,"
Breton said "Visits by potential customers have been continuous
since construction began in early April. Most ask if we have
room to expand."
Amkor has reached a preliminary arrangement with local authorities
to reserve additional land in the Waigaoqiao Free Trade Zone
sufficient for construction of up to two million square feet
of production and test facilities. Additionally, the existing
plant may be expanded by 70,000 sq ft in less than 90 days to
meet customer requirements.
"We have taken a number of steps to make this facility
a model factory," Breton said. "In addition to installing
the latest equipment, we are integrating Camstar System's InSite
manufacturing tracking and execution system to ensure we have
up to the minute information about our work in progress. It
is a system that enables us to keep statistical process control
of everything on the factory floor, including the history and
genealogy of the products it tracks. We know at all times the
location and control of customer products, from raw materials
to finished product," Breton said.
To ensure a ready supply of materials and spare parts, Amkor
has plans to establish a warehouse and office complex near the
factory for its vendors. Supplier representatives will have
both private office facilities and secure storage for their
goods within the warehouse, enabling them to replenish Amkor
and other customers on very short notice.
About Amkor Technology: Amkor Technology, Inc. is the world's
largest provider of contract microelectronics manufacturing
solutions. The company offers semiconductor companies and electronics
OEMs a complete set of microelectronic design and manufacturing
services, including deep sub-micron wafer fabrication; wafer
probe, wafer mapping, characterization and reliability testing;
IC packaging design and assembly; multi-chip module design and
assembly; and final testing. More information on Amkor is available
from the company's SEC filings and on Amkor's web site: www.amkor.com.
Forward-Looking Statement: This news release may contain forward-looking
statements that involve risk and uncertainty that could cause
actual results to differ from anticipated results. Further information
on risk factors that could affect the outcome of events set
forth in these statements and that would affect the company's
operating results and financial condition is detailed in the
company's filing with the Securities and Exchange Commission,
including the Report on Form 10-K.
For more information, contact:
Ken Jensen
Director Marketing Communications
1 (480) 821-2408 Ext. 5130
Kjens@amkor.com
Annie Ho
Always Communications
(852) 28557819
AnnieH@Agrapha-group.com
