Amkor Considers Selling Stake in China Business

According to sources familiar with the matter, Amkor Technology Inc., a provider of semiconductor packaging and testing services, is considering selling a stake in its China business. The company has hired advisory firms to help gauge preliminary interest from potential investors and prepare for a possible divestiture of the business. The sources said Amkor may retain a minority stake in the China operations, which are estimated to be valued between $1 billion and $1.5 billion. Amkor entered the Chinese market in 2001 by establishing a packaging facility in Shanghai and acquired another major semiconductor plant in Shanghai from IBM in 2004. To date, the company has not made a final decision on the matter, and discussions remain at an early stage; details—including the valuation—could still change. Amkor declined to comment on the reports.