20.8 Percent Market Growth Forecasted Through 2006, Says Industry Report

CHANDLER, Ariz., July 3 -- Citing increased market demand for flip chip solutions, Amkor Technology, Inc. (Nasdaq: AMKR) is experiencing strong growth in flip chip package shipments. According to Richard Groover, vice president of Amkor's flip chip product business unit, "Extensive technology development efforts over the last several years are rapidly translating into volume flip chip unit shipments to levels far exceeding a year ago." Groover confirmed first quarter 2003 unit shipments have more than doubled from the same quarter in 2002.

Demand for flip chip technology has increased significantly as economic hurdles such as high substrate costs are being addressed, allowing Amkor to offer high-performance flip chip packages more cost-effectively. The increased performance of flip chip technology is supporting demand in several applications areas, most notably PC chipsets, graphics, DSPs, and ASIC applications. Amkor noted that several customers who have qualified Amkor's high performance flip chip process were shipping at very low volumes in the past two years but are now realizing increased demand, and production volumes are ramping rapidly. According to an Advanced IC Packaging Market and Trends report in Electronic Trends Publication, the number of flip chip units shipped is expected to grow to more than 7 billion by 2006, representing a CAGR of more than 20 percent.

                     Table 4-14 Total Flip Chip Forecast
                 2001     2002     2003     2004     2005     2006     (%)

                           Flip Chip In Package (M)

     PGA          115      123      176      226      279      357     25.4
     BGA          177      242      394      621      702      954     40.0
      CSP         120      187      363      758    1,129    1,608     68.2
      Packages     20      102      146      197      242      283     70.4
     System in
      Package      16       30       46       62       76       89     40.2
     Total        448      685    1,124    1,864    2,429    3,291     49.0%

                              Flip Chip DCA (M)

     FC DCA
      Ceramic)    550      576      605      635      666      700      4.9
      (FC on
      Glass)    1,740    1,914    2,201    2,531    2,658    3,057     11.9
     Total      2,290    2,490    2,806    3,166    3,324    3,757    10.4%

                             Total Flip Chip (M)

     Total      2,738    3,175    3,930    5,030    5,754    7,047    20.8%

     Source: Electronic Trend Publications

The Flip Chip Process

Flip chip describes the method of electrically connecting the die to the package carrier -- either substrate or leadframe -- which then provides the connection from the die to the exterior of the package. In "standard" packaging, the interconnection between the die and the carrier is made using wire. The die is attached to the carrier face up; then a wire is bonded first to the die and then looped and bonded to the carrier. Wires are typically 1-5 mm in length and 25-35 mm in diameter. In contrast, the interconnection between the die and carrier in flip chip packaging is made through a conductive "bump" that is placed directly on the die surface.

The bumped die is then "flipped over" and placed face down, with the bumps connecting to the carrier directly. A bump is typically 70-100 mm high, and 100-125 mm in diameter.

Flip chip packaging is becoming increasingly accepted in mid-range and high-end applications because of its increased performance capabilities. Electrical performance directly impacts die performance. In the flip chip process, the power and ground I/Os are dropped directly into the die, cutting out noise generated in wire bond solutions when signals travel across the die and through the wire bond. As a result the output signal maintains its integrity, resulting in superior die performance.

"Amkor offers the industry's broadest array of flip chip solutions," noted Groover. "Amkor recognized the potential of flip chip technology many years ago and our technology roadmap has always reflected strong development efforts in this arena. Demand for our flip chip technology is increasing rapidly, particularly in graphics and chipset applications."

Amkor recently announced a collaboration with foundry leader TSMC on qualifying flip chip products using TSMC's advanced low-k process technology for 130 nm and 90 nm IC manufacturing.

About Amkor

Amkor Technology, Inc. is the world's largest provider of contract semiconductor assembly and test services. The company 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.

For further information, please contact: Jeffrey Luth of Amkor Technology, Inc., +1-480-821-2408 ext. 5130, jluth@amkor.com; or Martijn Pierik of Positio PR, +1-602-485-0962, martijn@positiopr.com, for Amkor Technology, Inc.