LAS VEGAS, Jan. 9 -- In support of its growing customer base, and the rapid increase in demand for products featuring DLP(TM) technology in both home entertainment and in business, Texas Instruments (NYSE: TXN) today announced that Amkor Technology, Inc. (Nasdaq: AMKR) is providing the company with subcontractor assembly facilities that will give TI substantial additional manufacturing capacity for its DLP(TM) technology. The arrangement sees Amkor, through its plant in Taiwan, providing assembly and test capability for the DMD (Digital Micromirror Device) semiconductor, which is at the heart of DLP(TM) technology. DMD wafers will continue to be manufactured at TI's internal fabrication facilities.

"It is vital to our customers to have the maximum possible assurance of continuity of supply as they move forward with exciting new products that are rapidly achieving market leadership," said John Van Scoter, Vice President and General Manager of TI's DLP(TM) Products division. "Beyond this, they are looking to us to ensure that we have the ability to support the growth that both they and we see. And finally, it's important to them as it is to us that DLP technology remains a highly cost-competitive solution. This arrangement with Amkor enables us to respond positively to all three of those customer needs."

"We are very excited to be working with Texas Instruments and to be involved in the development of a technology that has such outstanding potential," said John Boruch, Amkor's President and Chief Operating Officer. "With our industry-leading proficiency in high-volume, low-cost manufacturing, Amkor is ideally suited to support TI's ambitious plans for the rapid adoption of DLP technology. We look forward to a long and mutually beneficial relationship."

DLP(TM) technology has already established itself as the technology of choice for professional presenters who value not only the clear, sharp, bright images it delivers but also the uniquely small, lightweight projectors it enables. Recent additions to the list of manufacturers offering business projectors with these characteristics include Dell and Hewlett-Packard. Now, increasingly, leading manufacturers of home entertainment systems -- such as Hitachi, LG Electronics, Marantz, Mitsubishi, NEC, Panasonic, Runco, Samsung, Sharp and Yamaha -- are also embracing DLP(TM) technology and incorporating it into their leading-edge products.

"Our customers are making major investments to identify the best technologies that will enable the larger screen home entertainment systems of the future," said Dale Zimmerman, Business Manager for DLP(TM) Home Entertainment Products, "We believe that DLP technology is the only technology that has so far demonstrated the ability to enable the development of large screen home entertainment products that meet the key requirements of picture quality, attractive styling, high reliability and affordable pricing."

"Beyond this, DLP technology has another attraction to our customers: with over one and a half million subsystems delivered, it is proven, reliable and manufacturable in high volumes," concluded Zimmerman. "With these advantages on our side, we believe we can help our customers succeed -- but we also need to invest in the capacity necessary to sustain a high volume business model, and to invest in reducing costs. That's what this agreement with Amkor is all about."

The first DMDs assembled and tested by Amkor are available now. Amkor will assemble and test the full range of DMDs based on the new 200mm fabrication process. Founded over thirty-four years ago, Amkor is the world's largest provider of outsourced semiconductor assembly and test services.

DLP(TM) technology delivers the clearest, sharpest, brightest, most accurate images in a broad range of projection and display applications including business projectors, home entertainment projectors, large screen tabletop TVs, video walls and projection systems used in commercial entertainment. It is also the most reliable projection/display technology: its digital nature and excellent thermal characteristics means that its image does not degrade over time, and it does not suffer from the 'burn in' that afflicts other technologies and impairs image quality.

A development of DLP(TM) technology -- DLP Cinema(TM) technology -- delivers large screen images that are superior in many respects to film, and is helping to revolutionize the movie industry.

Today, TI supplies DLP(TM) subsystems to almost all the world's top projection and display manufacturers, who then design, manufacture and market products based on DLP(TM) technology. Since early 1996, over 1,500,000 DLP(TM) subsystems have been shipped. Over the past four years, DLP(TM) technology-based projectors have consistently won some of the audio-visual industry's most prestigious awards, including, in June 1998, an Emmy Award from the Academy of Television Arts & Sciences.

At the heart of TI's Digital Light Processing(TM) technology is the Digital Micromirror Device optical semiconductor chip. The DMD switch has an array of up to 1,310,000 hinged, microscopic mirrors which operate as optical switches to create a high resolution, full color image. For more information, please visit .

Texas Instruments Incorporated provides innovative DSP and analog technologies to meet our customers' real world signal processing requirements. In addition to Semiconductor, the company's businesses include Sensors & Controls, and Educational & Productivity Solutions. TI is headquartered in Dallas, Texas, and has manufacturing, design or sales operations in more than 25 countries.

Texas Instruments is traded on the New York Stock Exchange under the symbol TXN. More information is located on the World Wide Web at

Digital Light Processing, DLP and DLP Cinema are trademarks of Texas Instruments. All other products and names may or may not be trademarks or registered trademarks of their respective companies.

Source: Texas Instruments Incorporated