Toshiba Corp. and Amkor Technology Inc. of the United States said Monday that they have agreed to establish a joint venture in Tokyo in early November for semiconductor assembly and testing.
The venture will take over chip assembly and testing from Iwate Toshiba Electronics Co., based in Kitakami, Iwate Prefecture.
For Toshiba, the alliance "will provide reduced capital requirements to meet its diversifying packaging needs, advanced packaging technology and lower costs," the companies said.
Amkor will hold a 60 percent stake in the joint venture and buy out Toshiba's interest three years later.
Amkor is the world's largest provider of contract microelectronics manufacturing solutions, while Toshiba was second in Japan and third in the world in semiconductor revenue last year.