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$145 million outsourcing deal turns over Singapore and Shanghai facilities
East Fishkill, N.Y. - IBM Corp. last week announced a deal with Amkor Technology Inc. that will create an outsourcing relationship for IBM's far-flung packaging operations. As part of the deal, Amkor (Chandler, Ariz.) will acquire IBM's Singapore test operations and also will buy a 950,000-square-foot assembly complex built for IBM in Shanghai, China.
In return, Amkor will receive a substantial majority of IBM's business for wire-bond and flip-chip assembly and final test. Amkor also will enter into a cross-licensing agreement covering select IBM and Amkor assembly and test technology. The transaction is valued at approximately $145 million.
Amkor will pay IBM a total of $63 million for fixtures, equipment, intangibles and intellectual property, with payments of $20 million at closing, expected May 31, and $43 million in the fourth quarter. Amkor will pay $82...