Gross margin for the first quarter is expected to benefit from reductions in labor and other costs and foreign government subsidies of employee wages, as well as the strength of the US dollar against certain foreign currencies. However, gross margin is affected by a number of estimates and other factors which will be reviewed after the end of the quarter and the final gross margin for the first quarter could vary from our current estimate.

Amkor estimates that its current global cash balance has declined to about $275 million, reflecting payments relating to a patent license dispute, employee benefit and severance payments and the repurchase of outstanding notes due in 2011.

Amkor is a US-based provider of semiconductor assembly and test services.