Chandler, AZ & Shanghai, China – Amkor Technology Inc. and Grace Semiconductor Manufacturing Corp. (GSMC) have signed a letter of intent to form a multi-purpose alliance offering total supply chain solutions for customers in the rapidly growing microelectronics market in China.

On the frontend of the alliance, Amkor will become GSMC’s customer, with GSMC providing wafer services to Amkor, which will in turn assist GSMC in developing customers for its foundry. In addition, Amkor will provide GSMC with the entire spectrum of sales, marketing, planning, logistics, and IT services in support of its wafer fabrication business. On the backend of the alliance, Amkor will offer turnkey assembly and test solutions for GSMC customers through Amkor’s factory in Shanghai and potentially other Amkor locations throughout Asia.

Through the adoption of technologies from strategic partners in Japan and the US, SGSMC will produce the equivalent of 50,000 200mm wafers/month at 0.25-, 0.18-micron and more advanced technology as its first plant reaches full capacity. The investment for the first fab is expected to total roughly US$1.6 billion. Within the next ten years, SGSMC is planning to build four fabs on its 360,000-square-meter site (120,000 square meter site for living area), and total investment will likely exceed US$7.5 billion.