Amkor and Fujitsu End Talks on Factory Outsourcing
Amkor Technology Inc. (Chandler, AZ) and Fujitsu Ltd. (Japan) have ended discussions relating to Amkor's proposed equity purchase of Fujitsu's semiconductor assembly and test operation located in Kagoshima, Japan. The two companies had signed a non-binding memorandum of understanding in April 2002 and were in negotiations on a definitive agreement.
"We were looking forward to partnering with Fujitsu on this outsourcing venture and are disappointed that we could not reach agreement," said Amkor President and COO John Boruch. "After extensive negotiations, and taking into account various factors, including economic aspects and industry environment, both companies concluded that the transaction proposed by the memorandum of understanding was not feasible. While this venture would have presented Amkor with a desirable revenue stream from a world-class customer, we nonetheless believe it is in Amkor's best interest to focus our resources on other business opportunities."