NMD, Amkor, Toshiba to set up Japanese JV

SAN JOSE, CALIFORNIA: Nakaya Microdevices Corporation (NMD), Amkor Technology Inc and Toshiba are setting up a joint venture in Japan to provide services like semiconductor assembly and final testing.

As per the terms of the agreement, Nakaya Microdevices Corporation will become a joint venture and will change its name to ‘J-Devices Corporation.’

About 60 per cent of the joint venture is owned by the existing shareholders of Nakaya Microdevices Corporation, 30 per cent by Amkor Technology Inc, and 10 per cent by Toshiba Corporation.

The new company is likely to commence operations on October 31, 2009. The following operations and equipment are to be transferred to J-Devices Corporation: The back-end process business, including technology development at Toshiba LSI Package Solutions Corporation (TPACS), a Japan-based semiconductor packaging firm wholly owned by Toshiba; the system LSI and memory back-end process equipment at Oita Works and Fukuoka Works of TPACS; and some wafer-probing equipment installed at Oita Operations of Toshiba.

Employees of TPACS working for the transferred business will do the same business at J-Devices Corporation.

According to reports, Amkor Technology Inc is expected to invest around 1.5 billion yen ($17 million) in J-Devices Corporation and also buy certain assembly and test equipment from Toshiba Corporation for about 4.0 billion yen ($44 million) and lease those equipment to in J-Devices Corporation. In addition, Amkor will have the right to buy a majority stake in J-Devices Corporation in 2012. The investment of Toshiba Corporation in J-Devices is expected to be nearly 0.5 billion yen.