Amkor Technology, Inc., a semiconductor packaging and test services provider, acquired Toshiba Electronics Malaysia Sdn. Bhd. (TEM). TEM is the semiconductor packaging operation of Toshiba Corp. in Malaysia.

Toshiba and Amkor said that the deal includes a manufacturing services agreement among them. The contract provides Amkor that TEM will supply packaging, as well as test services for analog LSI products and some discrete semiconductor products.

With the acquisition, TEM will be able to benefit from Amkor's materials procurement capabilities and large scale production. The agreement will also increase the general competence of TEM's power semiconductor operations.

Meanwhile, Toshiba will keep on subcontracting power semiconductor test and packaging in favor of Amkor. The transaction also paves way for Toshiba to move its resources and focus on other ventures. Specifically, it is looking at reinforcing production capabilities of its power semiconductors' wafer fabrication.

Speaking about the transaction, Amkor said that they expected a strong, reinforced affiliation with Toshiba. Amkor also said that it intends to leverage the scale and technology of this new undertaking that they can draw leading power discrete customers.