LAS VEGAS, Jan. 8 -- At the 2004 Consumer Electronics Show today, Amkor Technology, Inc. (Nasdaq: AMKR), announced that it is again expanding manufacturing capacity in its Taiwan factory to accommodate strengthening consumer demand for Texas Instruments (TI) Digital Light Processing (DLP(TM)) technology. In January 2003, Amkor became TI's outsource partner for assembly and test of TI's DLP(TM) systems. Amkor will be adding Class 10 clean room and associated assembly and test equipment.
"With this expansion, Amkor will be nearly tripling our DLP(TM) subsystem assembly and test capacity by the second quarter of 2004," said Mark Popovich, VP of business development at Amkor. "Since commencing DLP(TM) subsystem assembly and test operations in January 2003 we have undertaken a series of production level increases on behalf of TI to support growing demand for the consumer electronics and business systems enabled by DLP(TM) technology. During this time we have consistently met or exceeded our customer's yield expectation."
"As a wider array of DLP technology-based products manufactured by our customers continue to experience increasing market share, we are working with Amkor to increase capacity to assure a continuous supply of high quality and cost-competitive DLP chips," said John Van Scoter, Vice President and General Manager, TI DLP(TM) Products. "We are absolutely committed to both supporting and supplying the technology needs of our customers."
The DLP(TM) subsystems contain an array of up to 2 million microscopic mirrors that operate as optical switches to create high resolution, full color images. TI's DLP(TM) technology is being applied across market sectors, including business, home entertainment, pro-venue and digital-cinema projectors. The use of TI DLP(TM) technology within home entertainment products such as front projectors and large-screen digital TVs is accelerating as a result of strong retail acceptance and winning industry accolades for delivering exceptional image quality. At the 2003 Consumer Electronics Show, eleven "cutting-edge" Innovations Awards for new electronics were presented to digital TVs and home theater systems featuring DLP(TM) technology.
In August 2003 TI announced shipment of its 2 millionth DLP(TM) subsystem, after reaching 1 million in December 2001. Industry analysts at W.R. Hambrecht + Co. estimate that shipments of projectors alone based on DLP(TM) technology will grow at a ~30% compound annual growth rate.
Amkor Technology, Inc. is a leading provider of contract semiconductor assembly and test services. Amkor offers semiconductor companies and electronics OEMs a complete set of microelectronic design and manufacturing services. More information on Amkor is available from the company's SEC filings and on Amkor's web site: www.amkor.com .
DLP and Digital Light Processing are trademarks of Texas Instruments.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, including statements concerning Class 10 clean room and associated assembly and test equipment, the anticipated increase in assembly and test capacity, and W.R. Hambrecht + Co.'s estimate regarding the growth rate of shipments of projectors based on DLP(TM) technology. These forward-looking statements represent expectations and beliefs that are subject to a number of risks and uncertainties, and actual results may differ materially. These risks and uncertainties include, without limitation, the following: the highly unpredictable nature of the projector industry; the volatility of consumer demand for projectors based on DLP(TM) technology; and the availability of funding sources necessary for and the costs related to the increase in assembly and test capacity. Further information on risk factors that could affect the outcome of the events set forth in these statements and that could affect our operating results and financial condition is detailed in our filings with the Securities and Exchange Commission, including our Report on Form 10-K for the fiscal year ended December 31, 2002 and our Report on Form 10-Q for the fiscal quarter ended September 2003.
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