CHANDLER, Ariz.--(BUSINESS WIRE)--Nov. 5, 2002--Amkor Technology (Nasdaq:AMKR - News) is expanding its VisionPak(TM) CMOS image sensor assembly capabilities in order to meet increasing demand for high quality, video and digital camera features in digital and PC cameras, cell phones and other hand-held applications.

Industry analyst In-Stat estimates the market for CMOS image sensors will increase rapidly from 19 million units in 2001 to 35 million units in 2002 and more than 140 million units in 2005. The most significant growth should occur through the integration of image sensors into cell phones, where In-Stat estimates the market will explode from 3.8 million units in 2001 to 10 million units in 2002 and more than 62 million units in 2005. Amkor estimates that approximately 60% of CMOS image sensor packaging is presently outsourced.

Amkor has been expanding its vision sensor capabilities through a state-of-the-art assembly facility in Taiwan that is now in high volume operation. For 2002, Amkor expects to produce more than 4 million VisionPak CMOS image sensor packages, representing approximately 13% of the total CMOS image sensor market and 22% of the outsourced market, making Amkor the largest outsourced supplier of CMOS image sensor packaging outside of Japan.

Amkor offers the growing CMOS image sensor market two types of vision package technologies. The first is a traditional image sensor package called a ceramic leadless chip carrier, or CLCC. This cavity style package is generally a single chip solution, but can be adapted for multi chip. Amkor established its VisionPak CLCC product line in late 1999 through close collaboration with a major U.S.-based supplier of CMOS image sensor devices.

With the knowledge gained in the early development of its CLCC sensor packages, Amkor expanded the scope of its image packaging solutions to provide a second, more advanced type of vision package: the fully integrated camera module. The VisionPak camera module typically consists of multiple components including CMOS image sensor die, passives, infrared filter glass, lens mount, and lens barrel, and sometimes a separate driver IC.

Amkor expects to produce more than 300 thousand VisionPak camera modules in 2002 and recently expanded its VisionPak camera module assembly facility in Taiwan.

Amkor's proprietary module assembly process implants lens assemblies onto the module housing and substrate. Then Amkor uses focus-and-lock testing technology to create a fully integrated image sensor assembly and focus line that optimizes the production flow and reduces cycle time. Amkor's integrated process leverages the company's existing infrastructure for wire bond and surface mount assembly.

Camera modules are typically customized to the customer's end-product application. CMOS image sensor modules are available in CIF, VGA, and in the future, MEGA pixel formats, depending on the design of the silicon die inserted into the package. The modules typically use the higher density VGA format, which capture video and/or photographs. By using the higher density image sensor die in its VisionPak, Amkor is able to increase the image quality without increasing the dimensions of the package.

"Camera modules have traditionally been produced internally by the large Japanese electronics companies. We've been working hard to develop innovations that will help reduce the packaging and focus costs for camera modules, which in turn should promote more outsourcing," said Mike Steidl, vice president of Amkor's advanced product development. "We believe our image sensor assembly and test capabilities should position Amkor to capture an attractive share of the rapidly growing market for portable imaging applications."

About Amkor

Amkor Technology, Inc. is the world's largest provider of contract semiconductor assembly and test services. The company offers semiconductor companies and electronics OEMs a complete set of microelectronic design and manufacturing services. More information on Amkor is available from the company's SEC filings and on Amkor's web site: www.amkor.com.

VisionPak(TM) is a trademark of Amkor Technology, Inc.