CHANDLER, Ariz. – March 17, 2011 – Amkor Technology, Inc. (NASDAQ: AMKR), today announced that its manufacturing facility in Kitakami, Japan, located about 260 miles northeast of Tokyo, has suffered relatively minor damage in last week’s earthquake.
“We are very relieved that there have been no reports of any injuries to our employees,” said Ken Joyce, Amkor’s president and chief executive officer. “We express our sympathies to the victims of the earthquake and tsunami, as well as to our Japanese colleagues and the nation as a whole.”
The Kitakami facility is currently closed due to power supply interruptions and plans are underway to restore production capabilities at the site when power, gas and water supplies, and transportation systems are stabilized. The Kitakami facility is Amkor’s smallest operation in both units and revenue, generating approximately $10 million to $11 million of monthly sales prior to the earthquake. The Kitakami facility only provides services to a few Japan-based customers. We are working closely with these customers to assess and support their requirements in light of the earthquake’s impact on their operations.
Japan is a major supplier of semiconductors, silicon wafers, specialty chemicals, substrates, equipment and other supplies to the electronics industry, and the industry is currently evaluating the potential effect of the earthquake on the overall supply chain for electronics. Since the earthquake, we have been in close communication with our customers, suppliers and OEMs to analyze the situation and evaluate alternative sources of supply where appropriate. Like many companies in the semiconductor industry supply chain, we operate with multiple suppliers from different geographic regions. This diversification is intended to help mitigate any potential disruptions from events such as these. However, it is too early to comment on the broader impact the earthquake may have on the electronics industry and our business and operations.
Amkor is a leading provider of semiconductor assembly and test services to semiconductor companies and electronics OEMs. More information on Amkor is available from the company’s SEC filings and on Amkor’s website: www.amkor.com.
Amkor Technology, Inc., Chandler
Sr. Director, Corporate Communications