Dallas, Texas 03/21/2014 (FINANCIALSTRENDS) – For an outsourcing service provider that Amkor Technology, Inc. (NASDAQ:AMKR) is, it appears that the turn of events at Samsung are well poised to turn the tide for this provider, dabbling in testing services as well.
The turn of events
Amkor Technology, Inc. (NASDAQ:AMKR) handles the testing and packaging services, which are typically back-end jobs in the semi-conductor industry, and has been the previous quarters been a sub-contractor for Apple devices, of all companies.
How is Amkor Technology, Inc. (NASDAQ:AMKR) associated with Apple devices?
As they say the more structured and fine-tuned the semi-conductor industry becomes, there is more room for specialization, entry-level service providers to prosper.
In the case of Amkor Technology, Inc. (NASDAQ:AMKR) the turn of events are like this.
Apple Inc, has over the years been using Samsung, the South Korean mobile phone maker as the hardware partner. It remains a less-hyped fact that Samsung has built an alternate-empire to its mobile making business segment. It manufacturers memory chips as well.
This has led to Apple Inc sourcing out the manufacture of its chips to the mobile-maker.
However, this time around, when Apple Inc, hopes to make good with its A8 chip, which is the most advanced and touted to be the system-on-a-chip, with Samsung, it is found wanting. Overwhelmed on many fronts Samsung will not be able to provide comprehensive services to Apple Inc. This has led to Apple looking at its next provider in the line, Taiwan Semiconductor.
Interestingly, Taiwan Semiconductor, in turn used Amkor Technology, Inc. (NASDAQ:AMKR) services for the back-end services.
This means the scoring sequences for the A8 chips- that is testing and packaging, if this remain on-course will now fall on the shoulders of Chandler headquarter service provider, which also owns Toshiba Electronics subsidiary – Toshiba Electronics Malaysian Sdn, where the packaging operations in Malaysia are executed.