Nakaya Microdevices

About Nakaya Microdevices

In the world of technology, not every story is about a flashy consumer product. Some of the most crucial stories happen deep in the supply chain. This is the playbook for Nakaya Microdevices Corporation, a Japanese company specializing in the critical back-end of semiconductor manufacturing: assembly and testing. With long-standing relationships with major Japanese integrated device manufacturers, Nakaya became a key player in the complex process of turning silicon wafers into finished chips. Recognizing the pressures for cost reduction in the industry, the company looked for strategic partnerships to enhance its offerings. A key move came when it formed a joint venture with the U.S.-based Advanced Interconnect Technologies (AIT). The new entity, AIT Nakaya Singapore PTE Ltd., was created to channel the assembly and test needs of Japanese clients to AIT's lower-cost facilities in Indonesia and Hong Kong. A more transformative event occurred in 2009. Nakaya Microdevices entered into a significant joint venture with U.S.-based Amkor Technology and Japanese giant Toshiba. Under the agreement, Nakaya Microdevices became a new entity named J-Devices Corporation. The ownership was split, with Nakaya's existing shareholders holding 60%, Amkor taking 30%, and Toshiba 10%. The deal combined Nakaya's low-cost operations with Toshiba's back-end processing business and Amkor's global scale, aiming to create a leading provider of semiconductor assembly and testing services in Japan.