Toshiba, Nakaya, Amkor Considering Joint Venture

CHANDLER, Ariz. (AP) -- Amkor Technology Inc. said Wednesday it was continuing negotiations with Nakaya Microdevices Corp. and Toshiba Corp. on an agreement to form a joint venture in Japan to provide large-scale integrated chip assembly and testing services.

The microchip assembly and test company said the start of operations will be delayed from an initial target date of Oct. 1. The companies plan to announce a new date when they reach a definitive agreement.

On April 28, the companies announced they had signed a non-binding memorandum of understanding to form the venture to offer LSI chip services. LSI chips are widely used in cell phones, digital players and other gadgets, and are considered more profitable than less sophisticated chips.

Shares of Amkor added 2 cents to $7.49 in afternoon trading, having earlier hit a new 12-month peak of $7.57.

More in Industry 4.0