Amkor Technology, Inc. (NASDAQ:AMKR) has announced plans to acquire Nanium S.A., a semiconductor packaging solutions firm based in Portugal. The aim of the acquisition is to strengthen the position of Amkor Technology in wafer-level packaging for tablets, smartphones and other applications. Amkor did not reveal the terms of the deal that is expected to close in the first quarter of this year. The closing of the deal will be dependent on meeting regulatory approvals and customary closing conditions.

Manufacturing expansion

Steve Kelley, the president and chief executive officer of the Tempe, Arizona-based Amkor Technology, said the acquisition of the Porto, Portugal-based Nanium would assist in expanding the scale of manufacturing and in broadening the customer base.

“This strategic acquisition will enhance Amkor’s position as one of the leading providers of WLP (wafer-level packaging) and WLFO (wafer-level fan-out) packaging solutions,” said Kelley.

According to Amkor Technology, Nanium has created a reliable wafer-level fan-out technology that is high-yielding and raised production to a high-volume level. Using a state-of-the-art 300-millimeter wafer-level packaging production line, Nanium has shipped close to one billion wafer-level fan-out packages.

The president of the executive board of Nanium has also hailed the acquisition saying that it would greatly enhance the prospects for future growth for the Portuguese company owing to the synergies it would enjoy from Amkor’s global presence.

Should I stay or should I go

Currently, Nanium’s workforce numbers 550. In 2016, the company which began life as Siemens Semiconductors recorded sales of $40 million. Nanium was founded in 1996.

While most of Nanium’s production facilities are in Portugal and Dresden, Germany, the Portuguese firm also has a presence in Boston, Massachusetts. It is not, however, clear whether that will remain to be the case once the acquisition is completed. This is because Amkor Technology has plenty of manufacturing lines in Asia in countries such as Taiwan, the Philippines, South Korea, Japan, and China. It is also not clear whether Nanium’s research and development facilities will be moved from Europe where the firm’s key customers are situated.

On Tuesday shares of Amkor Technology Inc fell by 3.81 percent to close the day at $9.60.