Toshiba Corporation from Japan has declared that it will merge with Amkor Technology Inc to intensify the operations of its Malaysia chip assembly unit. This deal is likely to be of worth more than several billions of yen.

Chip packager Amkor has been an US company which deals in Texas Instruments Inc and Xilinx. It has agreed the deal with Toshiba and will be purchasing all the shares of Toshiba Electronics Malaysia that deals in assembling of the power devices.

These power devices are the chips that are used in power electronic circuits.

Toshiba had proclaimed last year that it will be focusing on the production of power semiconductors and will intensify the manufacturing at its Ishikawa Prefecture unit. It has been aiming to maximize its production claiming it to be the best in this competitive world.

Toshiba has been selling its products globally and has nearly 490 companies with 203,000 employees worldwide. Its annual sales are more than 6.3 trillion yen (US$77 billion).

If to talk about Amkor, it deals in semiconductor assemble and provides services to semiconductor companies and electronics OEMs.

Meanwhile the shares of Toshiba have dropped by 0.3% against a percent decline in Tokyo's electrical machinery sub index.