To form a JV that is expected to begin operations on October 31
Nakaya Microdevices (NMD), Amkor Technology and Toshiba have signed definitive agreements for the formation of a joint venture to provide semiconductor assembly and final testing services in Japan. The new company is expected to begin operations on October 31.
Under the terms of the definitive agreements, NMD will become a joint venture, 60% owned by the existing shareholders of NMD, 30% by Amkor and 10% by Toshiba, and it will change its name to J-Devices Corporation.
Under the definitive agreements, the back-end process business, including technology development, at Toshiba LSI Package Solutions Corporation (TPACS), a Japan-based semiconductor packaging company wholly owned by Toshiba; the system LSI and memory back-end process equipment at TPACS’ Oita Works and Fukuoka Works; and certain wafer probing equipment installed at Toshiba’s Oita Operations will be transferred to J-Devices.
Amkor is expected to invest approximately JPY1.5 billion (approximately $17m) in J-Devices and to purchase certain assembly and test equipment from Toshiba for JPY4 billion (approximately $45m) and lease such equipment to J-Devices. Toshiba is expected to invest approximately JPY0.5 billion. In addition, Amkor will have the right to acquire a majority interest in J-Devices in 2012.