
<PAGE>   1
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549



                                    FORM 8-K


                                 CURRENT REPORT
     PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934


                                FEBRUARY 15, 2001
                DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED)




                             AMKOR TECHNOLOGY, INC.
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)




              000-29472                                23-1722724
         COMMISSION FILE NUMBER          (I.R.S. EMPLOYER IDENTIFICATION NUMBER)




                              1345 ENTERPRISE DRIVE
                             WEST CHESTER, PA 19380
                                 (610) 431-9600
              (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES AND ZIP CODE)
<PAGE>   2
ITEM 5.    OTHER EVENTS

          The consolidated financial statements of Amkor Technology, Inc. and
our subsidiaries as of and for each of the three years ended December 31, 2000
are filed herein. We present the information in the following order:

Report of Independent Accountants .............................................2
Consolidated Statements of Income -- Years ended December 31, 2000, 1999 and
     1998 .....................................................................3
Consolidated Balance Sheets -- December 31, 2000 and 1999 .....................4
Consolidated Statements of Stockholders' Equity -- Years ended
     December 31, 2000, 1999 and 1998 .........................................5
Consolidated Statements of Cash Flows -- Years ended
     December 31, 2000, 1999 and 1998 .........................................6
Notes to Consolidated Financial Statements ....................................7
Reports of Independent Public Accountants ....................................24






                                       1
<PAGE>   3
                        REPORT OF INDEPENDENT ACCOUNTANTS

To the Board of Directors and
Shareholders of
Amkor Technology, Inc.:

In our opinion, based on our audit and the report of another auditor, the
accompanying consolidated balance sheet and the related consolidated statements
of income, of stockholders' equity and of cash flows present fairly, in all
material respects, the financial position of Amkor Technology, Inc. and its
subsidiaries at December 31, 2000, and the results of their operations and their
cash flows for the year then ended in conformity with accounting principles
generally accepted in the United States of America. These financial statements
are the responsibility of the Company's management; our responsibility is to
express an opinion on these financial statements based on our audit. We did not
audit the financial statements of Amkor Technology Philippines (P1/P2), Inc. and
Amkor Technology Philippines (P3/P4), Inc. both wholly owned subsidiaries,
collectively referred to herein as ATP, which combined financial statements
reflect total assets and operating expenses (including cost of revenues) of 21%
and 17%, respectively, of the related consolidated totals at December 31, 2000
and for the year then ended. The combined financial statements of ATP were
audited by another auditor whose report thereon has been furnished to us, and
our opinion expressed herein, insofar as it relates to the amounts included for
ATP, is based solely on the report of the other auditor. We conducted our audit
of these statements in accordance with auditing standards generally accepted in
the United States of America, which require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audit and the report of the other auditor provide a reasonable basis for our
opinion.

PricewaterhouseCoopers LLP

February 2, 2001


                                       2
<PAGE>   4
                             AMKOR TECHNOLOGY, INC.
                        CONSOLIDATED STATEMENTS OF INCOME
                      (IN THOUSANDS, EXCEPT PER SHARE DATA)

<TABLE>
<CAPTION>
                                                                                      FOR THE YEAR ENDED
                                                                                         DECEMBER 31,
                                                                      ---------------------------------------------------
                                                                          2000               1999                1998
                                                                          ----               ----                ----
<S>                                                                   <C>                 <C>                 <C>
Net revenues                                                          $ 2,387,294         $ 1,909,972         $ 1,567,983
Cost of revenues -- including purchases from
     ASI                                                                1,782,158           1,560,816           1,307,150
                                                                      -----------         -----------         -----------
Gross profit                                                              605,136             349,156             260,833
                                                                      -----------         -----------         -----------
Operating expenses:
     Selling, general and administrative                                  192,623             144,538             118,392
     Research and development                                              26,057              11,436               8,251
     Amortization of goodwill and other acquired intangibles               63,080              17,105               1,454
                                                                      -----------         -----------         -----------
         Total operating expenses                                         281,760             173,079             128,097
                                                                      -----------         -----------         -----------
Operating income                                                          323,376             176,077             132,736
                                                                      -----------         -----------         -----------
Other (income) expense:
     Interest expense, net                                                119,840              45,364              18,005
     Foreign currency losses                                                4,812                 308               4,493
     Other expense, net                                                     1,295              25,117               9,503
                                                                      -----------         -----------         -----------
         Total other expense                                              125,947              70,789              32,001
                                                                      -----------         -----------         -----------
Income before income taxes, equity in loss of
     investees and minority interest                                      197,429             105,288             100,735
Provision for income taxes                                                 22,285              26,600              24,716
Equity in loss of investees                                               (20,991)             (1,969)                 --
Minority interest                                                              --                  --                 559
                                                                      -----------         -----------         -----------
Net income                                                            $   154,153         $    76,719         $    75,460
                                                                      ===========         ===========         ===========
Basic net income per common share                                     $      1.06         $      0.64         $      0.71
                                                                      ===========         ===========         ===========
Diluted net income per common share                                   $      1.02         $      0.63         $      0.70
                                                                      ===========         ===========         ===========
Shares used in computing net income per common share:
     Basic                                                                145,806             119,341             106,221
                                                                      ===========         ===========         ===========
     Diluted                                                              153,223             135,067             116,596
                                                                      ===========         ===========         ===========


Pro forma data (unaudited):
     Historical income before income taxes and minority interest                                              $   100,735
     Pro forma provision for income taxes                                                                          29,216
                                                                                                              -----------
     Pro forma income before minority interest                                                                     71,519
     Historical minority interest                                                                                     559
                                                                                                              -----------
     Pro forma net income                                                                                     $    70,960
                                                                                                              ===========
     Basic pro forma net income per common share                                                              $      0.67
                                                                                                              ===========
     Diluted pro forma net income per common share                                                            $      0.66
                                                                                                              ===========
</TABLE>

        The accompanying notes are an integral part of these statements.



                                       3
<PAGE>   5
                             AMKOR TECHNOLOGY, INC.
                           CONSOLIDATED BALANCE SHEETS
                                 (IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                                         DECEMBER 31,
                                                                                ----------------------------
                                                                                     2000             1999
                                                                                -----------      -----------
<S>                                                                             <C>              <C>
                                     ASSETS
Current assets:
     Cash and cash equivalents ............................................     $    93,517      $    98,045
     Short-term investments ...............................................              --          136,595
     Accounts receivable:
         Trade, net of allowance for doubtful accounts of $2,426 and $2,443         301,915          157,281
         Due from affiliates ..............................................           1,634            6,278
         Other ............................................................           6,465            6,469
     Inventories ..........................................................         108,613           91,465
     Other current assets .................................................          36,873           11,117
                                                                                -----------      -----------
              Total current assets ........................................         549,017          507,250
                                                                                -----------      -----------
Property, plant and equipment, net ........................................       1,478,510          859,768
                                                                                -----------      -----------
Investments ...............................................................         501,254           63,672
                                                                                -----------      -----------
Other assets:
     Due from affiliates ..................................................          25,013           27,858
     Goodwill and acquired intangibles, net ...............................         737,593          233,532
     Other ................................................................         101,897           63,009
                                                                                -----------      -----------
                                                                                    864,503          324,399
                                                                                -----------      -----------
              Total assets ................................................     $ 3,393,284      $ 1,755,089
                                                                                ===========      ===========

                      LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
     Bank overdraft .......................................................     $    25,731      $    16,209
     Short-term borrowings and current portion of long-term debt ..........          73,586            6,465
     Trade accounts payable ...............................................         133,047          122,147
     Due to affiliates ....................................................          32,534           37,913
     Accrued expenses .....................................................         129,301           88,577
     Accrued income taxes .................................................          52,232           41,587
                                                                                -----------      -----------
              Total current liabilities ...................................         446,431          312,898
Long-term debt ............................................................       1,585,536          687,456
Other noncurrent liabilitie ...............................................          46,483           16,994
                                                                                -----------      -----------
              Total liabilities ...........................................       2,078,450        1,017,348
                                                                                -----------      -----------

Commitments and contingencies

Stockholders' equity:
     Preferred stock, $0.001 par value, 10,000 shares authorized
         designated Series A, none issued .................................              --               --
     Common stock, $0.001 par value, 500,000 shares authorized,
         issued and outstanding of 152,118 in 2000 and 130,660 in 1999 ....             152              131
     Additional paid-in capital ...........................................         975,026          551,964
     Retained earnings ....................................................         343,886          189,733
     Receivable from stockholder ..........................................          (3,276)          (3,276)
     Accumulated other comprehensive loss .................................            (954)            (811)
                                                                                -----------      -----------
              Total stockholders' equity ..................................       1,314,834          737,741
                                                                                -----------      -----------
              Total liabilities and stockholders' equity ..................     $ 3,393,284      $ 1,755,089
                                                                                ===========      ===========
</TABLE>

                 The accompanying notes are an integral part of
                               these statements.


                                       4
<PAGE>   6
                             AMKOR TECHNOLOGY, INC.

                 CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                                 (IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                                                    ADDITIONAL
                                                                          COMMON STOCK               PAID-IN         RETAINED
                                                                    SHARES          AMOUNT           CAPITAL         EARNINGS
                                                                  ------------   --------------   ---------------  -----------
<S>                                                               <C>            <C>              <C>              <C>
Balance at December 31, 1997................................        82,610         $   46           $ 20,871         $ 70,621
    Net income..............................................            --             --                 --           75,460
    Unrealized losses on investments........................            --             --                 --               --
    Currency translation adjustments,
        reclassification for loss included in net
        income..............................................            --             --                 --               --

    Comprehensive income....................................

    Distributions...........................................            --             --                 --          (33,100)
    Issuance of 35.25 million common shares in
        public offering, net................................        35,250             35            360,228               --
    Acquisition of AKI......................................            --             (1)                --           (3,243)
    Change in par value of stock in connection
        with a reorganization...............................            --             38                (38)              --
                                                                 ------------    -------------   ---------------   -----------
Balance at December 31, 1998................................       117,860            118            381,061          109,738
    Net income..............................................            --             --                 --           76,719
    Unrealized losses on investments,
        net of tax..........................................            --             --                 --               --
    Comprehensive income....................................
    Issuance of stock through employee
        stock purchase plan and stock options...............           664               --              3,875               --
    Receivable from stockholder.............................            --               --                 --            3,276
    Debt conversion.........................................        12,136               13            167,028               --
                                                                 ------------     --------------   --------------    ----------
Balance at December 31, 1999................................       130,660              131            551,964          189,733
    Net income..............................................            --               --                 --          154,153
    Unrealized losses on investments,
        net of tax..........................................            --               --                 --               --
    Comprehensive income....................................
    Issuance of 20.5 million common stock shares
        and 3.9 million common stock warrants...............        20,500               21            409,980               --
    Issuance of stock through employee
        stock purchase plan and stock options...............           710               --              9,622               --
    Debt conversion.........................................           248               --              3,460               --
                                                                 ------------     --------------   --------------    ----------
Balance at December 31, 2000................................       152,118           $  152        $   975,026       $  343,886
                                                                 ============     ==============   ==============    ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                               ACCUMULATED
                                                               RECEIVABLE         OTHER
                                                                  FROM         COMPREHENSIVE                     COMPREHENSIVE
                                                               STOCKHOLDER     INCOME (LOSS)         TOTAL           INCOME
                                                              --------------   --------------   --------------   --------------
<S>                                                           <C>              <C>              <C>              <C>
Balance at December 31, 1997................................     $    --        $    (663)        $   90,875
    Net income..............................................          --               --             75,460          $  75,460
    Unrealized losses on investments........................          --             (556)              (556)              (556)
    Currency translation adjustments,
        reclassification for loss included in net
        income..............................................          --              663                663                663
                                                                                                                 ---------------
    Comprehensive income....................................                                                          $  75,567
                                                                                                                 ===============
    Distributions...........................................          --               --            (33,100)
    Issuance of 35.25 million common shares in
        public offering, net................................          --               --            360,263
    Acquisition of AKI......................................          --               --             (3,244)
    Change in par value of stock in connection
        with a reorganization...............................          --               --                 --
                                                              --------------   --------------   --------------
Balance at December 31, 1998................................          --             (556)           490,361
    Net income..............................................          --               --             76,719          $  76,719
    Unrealized losses on investments,
        net of tax..........................................          --             (255)              (255)              (255)
                                                                                                                 ---------------
    Comprehensive income....................................                                                          $  76,464
                                                                                                                 ===============
    Issuance of stock through employee
        stock purchase plan and stock options..............           --               --              3,875
    Receivable from stockholder.............................      (3,276)              --                 --
    Debt conversion.........................................          --               --            167,041
                                                              --------------   --------------   --------------
Balance at December 31, 1999................................          (3,276)        (811)           737,741
    Net income..............................................              --           --            154,153         $  154,153
    Unrealized losses on investments,
        net of tax..........................................              --         (143)              (143)              (143)
                                                                                                                 ---------------
    Comprehensive income....................................                                                         $  154,010
                                                                                                                 ===============
    Issuance of 20.5 million common stock shares
        and 3.9 million common stock warrants...............              --           --            410,001
    Issuance of stock through employee
        stock purchase plan and stock options...............              --           --              9,622
    Debt conversion.........................................              --           --              3,460
                                                              --------------   --------------   --------------
Balance at December 31, 2000................................  $       (3,276)  $     (954)       $ 1,314,834
                                                              ==============-  ==============-  ==============
</TABLE>


        The accompanying notes are an integral part of these statements.



                                       5
<PAGE>   7
                             AMKOR TECHNOLOGY, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                                                     FOR THE YEAR ENDED
                                                                                                         DECEMBER 31,
                                                                                          ------------------------------------------
                                                                                              2000           1999           1998
                                                                                          -----------      ---------      ---------
<S>                                                                                       <C>              <C>            <C>
Cash flows from operating activities:
   Net income .......................................................................     $   154,153      $  76,719      $  75,460
   Adjustments to reconcile net income to net cash provided
     by operating activities --
     Depreciation and amortization ..................................................         325,896        176,866        118,022
     Amortization of deferred debt issuance costs ...................................           7,013          3,466          1,217
     Debt conversion expense ........................................................             272         17,381             --
     Provision for accounts receivable ..............................................             (17)        (3,500)         1,719
     Provision for excess and obsolete inventory ....................................          10,000          6,573          7,200
     Deferred income taxes ..........................................................          (8,255)         9,418          1,250
     Equity in loss of investees ....................................................          20,991          4,591             --
     Loss on sale of fixed assets and investments ...................................           1,355          1,805          2,500
     Minority interest ..............................................................              --             --            559
   Changes in assets and liabilities excluding effects
     of acquisitions --
     Accounts receivable ............................................................         (72,914)       (44,526)         4,742
     Repurchase of accounts receivable and settlement of security agreement .........         (71,500)        (2,700)       (16,500)
     Other receivables ..............................................................           2,884           (555)        (1,021)
     Inventories ....................................................................         (23,871)       (12,063)        23,042
     Due to/from affiliates, net ....................................................           2,110         35,403        (11,117)
     Other current assets ...........................................................         (17,977)         1,601          6,709
     Other non-current assets .......................................................         (19,582)       (15,088)        (8,061)
     Accounts payable ...............................................................          12,953         27,474        (12,489)
     Accrued expenses ...............................................................          32,561         13,117         33,489
     Accrued income taxes ...........................................................          10,645          2,695         11,924
     Other long-term liabilities ....................................................           7,108         (5,380)          (685)
                                                                                          -----------      ---------      ---------
       Net cash provided by operating activities ....................................         373,825        293,297        237,960
                                                                                          -----------      ---------      ---------
Cash flows from investing activities:
   Purchases of property, plant and equipment .......................................        (480,074)      (242,390)      (107,889)
   Acquisition of K1, K2 and K3, net of cash acquired ...............................        (927,290)            --             --
   Investment in ASI ................................................................        (459,000)       (41,638)            --
   Acquisition of Integra Technologies, LLC .........................................         (17,602)            --             --
   Acquisition of K4 ................................................................              --       (575,000)            --
   Acquisition of AAPMC .............................................................              --         (2,109)            --
   Acquisition of minority interest in AAP ..........................................              --             --        (33,750)
   Acquisition of AKI ...............................................................              --             --         (3,244)
   Sale of property, plant and equipment ............................................           2,823             --            121
   Proceeds from the sale (purchase) of investments .................................         136,879       (135,595)       (18,550)
                                                                                          -----------      ---------      ---------
       Net cash used in investing activities ........................................      (1,744,264)      (996,732)      (163,312)
                                                                                          -----------      ---------      ---------
Cash flows from financing activities:
   Net change in bank overdrafts and short-term borrowings ..........................           5,975        (24,264)      (173,565)
   Net proceeds from issuance of long-term debt .....................................       1,027,479        603,569        203,170
   Payments of long-term debt .......................................................         (87,166)        (9,287)      (158,833)
   Net proceeds from the issuance of 20.5 million common shares in a private
     equity offering ................................................................         410,001
   Net proceeds from issuance of 35.25 million common shares
     in public offering .............................................................              --             --        360,263
   Proceeds from issuance of stock through employee stock
     purchase plan and stock options ................................................           9,622          3,875             --
   Proceeds from issuance of Anam USA, Inc. debt ....................................              --             --        522,116
   Payments of Anam USA, Inc. debt ..................................................              --             --       (658,029)
   Distributions to stockholders ....................................................              --             --        (33,100)
                                                                                          -----------      ---------      ---------
       Net cash provided by financing activities ....................................       1,365,911        573,893         62,022
                                                                                          -----------      ---------      ---------
Net increase (decrease) in cash and cash equivalents ................................          (4,528)      (129,542)       136,670
Cash and cash equivalents, beginning of period ......................................          98,045        227,587         90,917
                                                                                          -----------      ---------      ---------
Cash and cash equivalents, end of period ............................................     $    93,517      $  98,045      $ 227,587
                                                                                          ===========      =========      =========
Supplemental disclosures of cash flow information:
   Cash paid during the period for:
     Interest .......................................................................     $   111,429      $  45,500      $  27,730
     Income taxes ...................................................................     $    18,092      $  13,734      $  12,908
</TABLE>

        The accompanying notes are an integral part of these statements.



                                       6
<PAGE>   8
                             AMKOR TECHNOLOGY, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
   (U.S. DOLLAR AMOUNTS IN THOUSANDS, EXCEPT SHARE AND DOLLAR PER SHARE DATA)


1.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

         The consolidated financial statements include the accounts of Amkor
Technology, Inc. and its subsidiaries. All of the company's subsidiaries are
wholly-owned except for a small number of shares of each of the Philippine
subsidiaries which are required to be owned by directors of these companies
pursuant to Philippine law. The consolidated financial statements reflect the
elimination of all significant intercompany accounts and transactions. The
investments in and the operating results of 20% to 50% owned companies are
included in the consolidated financial statements using the equity method of
accounting.

         The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results could differ from those estimates. Certain
previously reported amounts have been reclassified to conform with the current
presentation principally the presentation of the amortization of goodwill and
other acquired intangibles.

Foreign Currency Translation

         Substantially all of the foreign subsidiaries and investee companies
use the U.S. dollar as their functional currency. Accordingly, monetary assets
and liabilities which were originally denominated in a foreign currency are
translated into U.S. dollars at month-end exchange rates. Non-monetary items
which were originally denominated in foreign currencies are translated at
historical rates. Gains and losses from such translation and from transactions
denominated in foreign currencies are included in other (income) expense.

Concentrations of Credit Risk

         Financial instruments, for which we are subject to credit risk, consist
principally of accounts receivable, cash and cash equivalents and short-term
investments. With respect to accounts receivable, we mitigate our credit risk by
selling primarily to well established companies, performing ongoing credit
evaluations and making frequent contact with customers. We have mitigated our
credit risk with respect to cash and cash equivalents, as well as short-term
investments, through diversification of our holdings into various money market
accounts, U.S. treasury bonds, federal mortgage backed securities, high grade
municipal bonds, commercial paper and preferred stocks.

Risks and Uncertainties

       Our future results of operations involve a number of risks and
uncertainties. Factors that could affect future operating results and cause
actual results to vary materially from historical results include, but are not
limited to, dependence on the highly cyclical nature of the semiconductor
industry, uncertainty as to the demand from our customers over both the long-
and short-term, competitive pricing and declines in average selling prices we
experience, our dependence on our relationship with Anam Semiconductor, Inc.
(ASI) for all of our wafer fabrication output, our reliance on a relatively
small group of principal customers, the timing and volume of orders relative to
our production capacity, the absence of significant backlog in our business,
availability of manufacturing capacity and fluctuations in manufacturing yields,
the availability of financing, our high leverage and the restrictive covenants
contained in the agreements governing our indebtedness, our competition, our
dependence on international operations and sales, our dependence on raw material
and equipment suppliers, exchange rate fluctuations, our dependence on key
personnel, our difficulties managing our growth, the enforcement of intellectual
property rights by or against us, our need to comply with existing and future
environmental regulations and the results of ASI as it impacts our financial
results.

Cash and Cash Equivalents

         We consider all highly liquid investments with a maturity of three
months or less when purchased to be cash equivalents.

Inventories

         Inventories are stated at the lower of cost or market. Cost is
determined principally by using a moving average method.


                                       7
<PAGE>   9
Property, Plant and Equipment

         Property, plant and equipment are stated at cost. Depreciation is
calculated by the straight-line method over the estimated useful lives of
depreciable assets. Accelerated methods are used for tax purposes. Depreciable
lives follow:

<TABLE>
<S>                                                                                         <C>
         Buildings and improvements.................................................        10 to 30 years
         Machinery and equipment....................................................          3 to 5 years
         Furniture, fixtures and other equipment....................................         3 to 10 years
</TABLE>

         Cost and accumulated depreciation for property retired or disposed of
are removed from the accounts and any resulting gain or loss is included in
earnings. Expenditures for maintenance and repairs are charged to expense as
incurred. Depreciation expense was $262.0 million, $158.9 million and $116.4
million for 2000, 1999 and 1998, respectively.

Goodwill and acquired intangibles

         Goodwill is recorded when there is an excess of the cost of an
acquisition over the fair market value of the net tangible and identifiable
intangible assets acquired. Acquired intangibles includes patents and
workforce-in-place. Goodwill and acquired intangibles are amortized on a
straight-line basis over a period of ten years. The unamortized balances
recorded for goodwill and acquired intangibles are evaluated periodically for
potential impairment based on the future estimated cash flows of the acquired
businesses.

Other Noncurrent Assets

         Other noncurrent assets consist principally of deferred debt issuance
costs, security deposits, the cash surrender value of life insurance policies,
deferred income taxes and tax credits.


Other Noncurrent Liabilities

         Other noncurrent liabilities consist primarily of pension obligations
and noncurrent income taxes payable.

Income Taxes and Pro Forma Income Statement Data

         Amkor Electronics, Inc. (AEI), which was merged into our company just
prior to the initial public offering of our company in May 1998, elected to be
taxed as an S Corporation under the provisions of the Internal Revenue Code of
1986 and comparable state tax provisions. As a result, AEI did not recognize
U.S. federal corporate income taxes. Instead, the stockholders of AEI were taxed
on their proportionate share of AEI's taxable income. Accordingly, no provision
for U.S. federal income taxes was recorded for AEI. The accompanying
consolidated statements of income include an unaudited pro forma adjustment to
reflect income taxes which would have been recorded if AEI had not been an S
Corporation, based on the tax laws in effect during the respective periods. Just
prior to the initial public offering, AEI terminated its S Corporation status at
which point the profits of AEI became subject to federal and state income taxes
at the corporate level. The receivable from stockholder included in
stockholders' equity represents the balance due from Mr. & Mrs. Kim and the Kim
Family Trusts related to the finalization of AEI's tax returns.

Revenue Recognition and Risk of Loss

         Our company does not take ownership of customer-supplied semiconductor
wafers. Title and risk of loss remains with the customer for these materials at
all times. Accordingly, the cost of the customer-supplied materials is not
included in the consolidated financial statements. Revenues from packaging
semiconductors and performing test services are recognized upon shipment or
completion of the services. We record wafer fabrication services revenues upon
shipment of completed wafers. Such policies are consistent with provisions in
the Securities and Exchange Commission's Staff Accounting Bulletin No. 101,
"Revenue Recognition in Financial Statements."

Research and Development Costs

         Research and development costs are charged to expense as incurred.



                                       8
<PAGE>   10
Recently Issued Accounting Standards

         In June 1998, the Financial Accounting Standards Board issued SFAS No.
133, "Accounting for Derivative Instruments and Hedging Activities." SFAS No.
133 establishes accounting and reporting standards requiring that every
derivative instrument (including certain derivative instruments embedded in
other contracts) be recorded on the balance sheet as either an asset or
liability measured at its fair value. SFAS No. 133 requires that changes in the
derivative's fair value be recognized currently in earnings unless specific
hedge accounting criteria are met. Special accounting for qualifying hedges
allows a derivative's gains and losses to offset related results on the hedged
item in the income statement, and requires that a company must formally
document, designate, and assess the effectiveness of transactions that receive
hedge accounting. SFAS No. 133, as amended by SFAS No. 137, is effective for
fiscal years beginning after June 15, 2000. We will adopt this statement during
the first quarter of 2001 and we believe that the impact of adoption on the
financial statements will not be material.


2.  RELATIONSHIP WITH ANAM SEMICONDUCTOR INC.

         On May 1, 2000 we completed our purchase of ASI's three remaining
packaging and test factories, known as K1, K2 and K3, for a purchase price of
$950.0 million. In addition we made a commitment to a $459.0 million equity
investment in ASI. Pursuant to the commitment we made an equity
investment in ASI of $309.0 million on May 1, 2000. We fulfilled the remaining
equity investment commitment of $150.0 million in three installments of which
$30.0 million was invested on June 30, 2000, $60.0 million was invested on
August 30, 2000 and October 27, 2000. We financed
the acquisition and investment with the proceeds of a $258.8 million convertible
subordinated notes offering, a $410.0 million private equity financing, $750.0
million of new secured bank debt and approximately $103 million from cash on
hand. As of December 31, 2000, we had invested a total of $500.6 million in
ASI including an equity investment of $41.6 million made on October 1999. We
owned as of December 31, 2000 42% of the outstanding voting stock of ASI.
We will continue to report ASI's results in our financial statements through
the equity method of accounting.

         The amount by which the cost of our investment exceeds our share of the
underlying assets of ASI as of the date of our investment is being amortized on
a straight-line basis over a five-year period. The amortization is included in
our consolidated statement of income within equity in income of investees. As of
December 31, 2000, the unamortized excess of the cost of our equity investment
in ASI above our share of the underlying net assets is $154.1 million.

     The acquisition of K1, K2 and K3 was accounted for as a purchase.
Accordingly, the results of K1, K2 and K3 have been included in the accompanying
consolidated financial statements since the date of acquisition. Goodwill and
acquired intangibles as of the acquisition date were $555.8 million and are
being amortized on a straight-line basis over a 10 year period. Acquired
intangibles include the value of acquired patent rights and of a
workforce-in-place. The fair value of the assets acquired and liabilities
assumed was approximately $394 million for fixed assets, $9 million for
inventory and other assets, and $9 million for assumed liabilities.

     On May 17, 1999, we purchased ASI's packaging and test business known as
K4. The purchase price for K4 was $575.0 million in cash plus the assumption of
approximately $7.0 million of employee benefit liabilities. The acquisition was
accounted for as a purchase. Accordingly, the results of K4 have been included
in the accompanying consolidated financial statements since the date of
acquisition. Goodwill and acquired intangibles as of the acquisition date were
$222.9 million and are being amortized on a straight-line basis over a 10 year
period. The fair value of the assets acquired and liabilities assumed was
approximately $359 million for fixed assets and $7 million for assumed
liabilities.


     On July 1, 1999, we acquired the stock of Anam/Amkor Precision Machine
Company (AAPMC) for $3.8 million, which was paid to ASI during June 1999. AAPMC
supplies machine tooling used by us at our Philippine operations. As an interim
step to this acquisition, during April 1999, we assumed and repaid $5.7 million
of AAPMC's debt. The acquisition was financed through available working capital
and was accounted for as a purchase. Accordingly, the results of AAPMC have been
included in the accompanying consolidated financial statements since the date of
acquisition and goodwill of approximately $2.0 million was recorded as of the
date of acquisition and is being amortized on a straight-line basis over a ten
year period. The historical operating results of AAPMC are not material in
relation to our operating results.

     On June 1, 1998, we purchased ASI's 40% interest in Amkor/Anam Pilipinas,
Inc. (AAP) for $33.8 million. The acquisition was accounted for using the
purchase method of accounting which resulted in the elimination of the minority
interest liability reflected on the consolidated balance sheet and the recording
of approximately $23.9 million of goodwill which is being amortized over 10
years.


                                       9
<PAGE>   11
Pro Forma Financial Information for Amkor (unaudited)

     The unaudited pro forma information below assumes that the May 2000
acquisition of K1, K2 and K3 occurred at the beginning of 2000 and 1999 and the
May 1999 acquisition of K4 had occurred at the beginning of 1999. The pro forma
adjustments include a provision for amortization of goodwill and other
identified intangibles, an adjustment of depreciation expense based on the fair
market value of the acquired assets, interest expense on debt issued to finance
the acquisitions and income taxes related to the pro forma adjustments. The pro
forma results are not necessarily indicative of the results we would actually
have achieved if the acquisition had been completed as of the beginning of each
of the periods presented, nor are they necessarily indicative of future
consolidated results.

<TABLE>
<CAPTION>
                                                                                                   FOR THE YEAR ENDED
                                                                                                      DECEMBER 31,
                                                                                       -------------------------------------
                                                                                             2000                 1999
                                                                                       -----------------     ---------------
                                                                                      (IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
<S>                                                                                    <C>                  <C>
Net revenues........................................................................      $   2,397,515     $   1,941,109
Gross profit........................................................................            675,172           574,265
Operating income....................................................................            366,686           311,777
Income before income taxes and equity in income
   (loss) of investees..............................................................            215,904           147,140
Net income..........................................................................            172,518           126,042
Earnings per share:
   Basic net income per common share................................................               1.14              0.90
   Diluted net income per common share..............................................               1.10              0.89

Depreciation expense ...............................................................            285,256           238,741
Amortization of goodwill and acquired intangibles ..................................             81,607            83,436
</TABLE>

     The pro forma adjustments exclude the effects of our investments in ASI.
Had we included pro forma adjustments for the year ended December 31, 2000 and
1999 related to our investments in ASI, pro forma net income would have been
$160.8 million and $64.9 million, respectively, and pro forma earnings per share
on a diluted basis would have been $1.02 and $0.46, respectively.

Financial Information for ASI

     The following summary of consolidated financial information was derived
from the consolidated financial statements of ASI, reflecting ASI's packaging
and test operations as discontinued operations within their results of
operations. ASI's net income for the year ended December 31, 2000 includes a
$434.2 million gain on sale of K1, K2 and K3, which was eliminated for purposes
of calculating our equity in income of ASI.

<TABLE>
<CAPTION>
                                                                               FOR THE YEAR ENDED DECEMBER 31,
                                                                       ------------------------------------------------
                                                                           2000             1999              1998
                                                                       -------------    -------------     -------------
                                                                                        (IN THOUSANDS)
<S>                                                                    <C>              <C>               <C>
SUMMARY INCOME STATEMENT INFORMATION FOR ASI
Net revenues                                                           $     344,792    $     285,925     $     221,098
Gross profit                                                                  38,307           46,293            (9,380)
Loss from continuing operations                                              (19,703)        (169,759)         (957,165)
Net income                                                                   450,641          109,865          (847,533)
</TABLE>

<TABLE>
<CAPTION>
                                                                                        DECEMBER 31,      DECEMBER 31,
                                                                                            2000              1999
                                                                                        -------------     -------------
<S>                                                                                     <C>               <C>
SUMMARY BALANCE SHEET INFORMATION FOR ASI                                                        (IN THOUSANDS)
Cash, including current portion of restricted cash and bank deposits.................   $     215,008     $     202,969
Property, plant and equipment, net...................................................         816,779         1,037,935
Current assets ......................................................................         303,486           311,866
Noncurrent assets (including property, plant and equipment)..........................         966,387         1,175,603
Current liabilities..................................................................         165,665           301,785
Total debt...........................................................................         294,004         1,447,975
Noncurrent liabilities (including debt)..............................................         342,882         1,483,434
Total stockholders' equity (deficit).................................................         761,326          (297,750)
</TABLE>



                                       10
<PAGE>   12
         ASI's business had been severely affected by the economic crisis in
Korea. ASI has traditionally operated with a significant amount of debt relative
to its equity and has contractually guaranteed the debt obligations of certain
affiliates and subsidiaries. ASI was part of the Korean financial restructuring
program known as "Workout" beginning in October 1998. The Workout program was
the result of an accord among Korean financial institutions to assist in the
restructuring of Korean business enterprises. The process involved negotiation
between the related banks and ASI, and did not involve the judicial system. The
Workout process restructured the terms of ASI's bank debt, however, it did not
impact debts outstanding with trade creditors, including indebtedness with our
company. ASI's operations continued uninterrupted during the process. ASI was
released from workout with its Korean creditor banks on July 18, 2000.

     We have a long-standing relationship with ASI. ASI was founded in 1956 by
Mr. H. S. Kim, the father of Mr. James Kim, our Chairman and Chief Executive
Officer. Through our supply agreements with ASI, we historically have had a
first right to substantially all of the packaging and test services capacity of
ASI and the exclusive right to all of the wafer output of ASI's wafer
fabrication facility. Beginning in May 2000 with our acquisition of K1, K2 and
K3, we no longer receive packaging and test services from ASI. We continue to
have certain contractual relationships with ASI, primarily our wafer fabrication
services supply agreement. Under this supply agreement, we have the exclusive
right to all of the wafer output of ASI's wafer fabrication facility, and we
expect to continue to purchase all of ASI's wafer fabrication services.
Historically, we have had other relationships with ASI affiliated companies for
financial services, construction services, materials and equipment. Total
purchases from ASI and its affiliates included in cost of revenue for the years
ended December 31, 2000, 1999 and 1998 were $499.8 million, $714.5 million and
$573.8 million. Additionally, other services performed by ASI and its affiliates
included in interest expense for the years ended December 31, 2000, 1999 and
1998 were $1.6 million, $1.4 million and $2.2 million. Construction services and
equipment purchases received from ASI and its affiliates capitalized during the
years ended December 31, 2000, 1999 and 1998 were $38.8 million, $18.4 million
and $11.1 million.


3.   ACCOUNTS RECEIVABLE SALE AGREEMENT

         Effective July 1997 we entered into an agreement to sell receivables
with certain banks. The transaction qualified as a sale under the provisions of
SFAS No. 125 "Accounting for Transfers and Servicing of Financial Assets and
Extinguishments of Liabilities." Under the agreement, the participating banks
committed to purchase, with limited recourse, all right, title and interest in
selected accounts receivable, up to a maximum of $100.0 million. Losses on
receivables sold under the agreement were approximately $1.1 million, $4.3
million and $4.7 million in 2000, 1999 and 1998, respectively, and are included
in other expense, net. In March 2000, we terminated the agreement and
repurchased approximately $71.5 million of accounts receivable.


4.   INVENTORIES

         Inventories consist of raw materials and purchased components that are
used in the semiconductor packaging process. Inventories are located at our
facilities in the Philippines and Korea. Components of inventories follow:

<TABLE>
<CAPTION>
                                                                                                 DECEMBER 31,
                                                                                            2000              1999
                                                                                        -------------     -------------
                                                                                                 (IN THOUSANDS)
<S>                                                                                     <C>               <C>
Raw materials and purchased components...............................................   $      99,570     $      81,379
Work-in-process......................................................................           9,043            10,086
                                                                                        -------------     -------------
                                                                                        $     108,613     $      91,465
                                                                                        =============     =============
</TABLE>

5.   PROPERTY, PLANT AND EQUIPMENT

     Property, plant and equipment consist of the following:

<TABLE>
<CAPTION>
                                                                                                 DECEMBER 31,
                                                                                            2000              1999
                                                                                        -------------     -------------
                                                                                                  (IN THOUSANDS)
<S>                                                                                     <C>               <C>
Land ...............................................................................       $   80,048      $     38,349
Buildings and improvements...........................................................         445,785           303,077
Machinery and equipment..............................................................       1,506,774           883,057
Furniture, fixtures and other equipment..............................................          79,691            52,866
Construction in progress.............................................................          70,753            47,393
                                                                                        -------------     -------------
                                                                                            2,183,051         1,324,742
Less -- Accumulated depreciation and amortization....................................        (704,541)         (464,974)
                                                                                        --------------    -------------
                                                                                          $ 1,478,510      $    859,768
                                                                                        ==============    =============
</TABLE>



                                       11
<PAGE>   13
6.   INVESTMENTS

     Investments include equity investments in affiliated companies and
noncurrent marketable securities as follows:

<TABLE>
<CAPTION>
                                                                                                DECEMBER 31,
                                                                                            2000              1999
                                                                                        -------------     -------------
                                                                                               (IN THOUSANDS)
<S>                                                                                     <C>               <C>
Equity investments under the equity method:
   ASI (ownership of 42% and 18%, respectively)......................................   $     478,943     $      39,927
   Other equity investments (20% - 50% owned)
     Taiwan Semiconductor Technology Corporation.....................................          17,488            18,456
     Other...........................................................................             664               860
                                                                                        -------------     -------------
       Total equity investments......................................................         497,095            59,243
Marketable securities classified as available for sale...............................           4,159             4,429
                                                                                        -------------     -------------
                                                                                        $     501,254     $      63,672
                                                                                        =============     =============
</TABLE>

         On October 21, 1998, we entered into a joint venture, Taiwan
Semiconductor Technology Corporation ("TSTC"), with Taiwan Semiconductor
Manufacturing Corporation, Acer Inc., United Test Center and Chinfon
Semiconductor & Technology Company. TSTC, which commenced operations in 1999,
provides packaging services primarily for the Taiwan market and Taiwan foundry
output. We committed to invest an estimated total of $40.0 million in TSTC. As
of December 31, 2000, we own a 25% interest in TSTC and the total investment we
made was $20.0 million of which $10.0 million interest was acquired from ASI.
Our investment in TSTC is accounted for using the equity method of accounting.


7.  DEBT

       Following is a summary of short-term borrowings and long-term debt:

<TABLE>
<CAPTION>
                                                                                                   DECEMBER 31,
                                                                                            2000              1999
                                                                                        -------------     -------------
                                                                                                  (IN THOUSANDS)
<S>                                                                                     <C>               <C>
Short-term borrowings................................................................   $         --      $       3,386
$900.0 million secured bank facility:
   Term A loan, LIBOR plus 2.75% due March 2005......................................         297,500               --
   Term B loan, LIBOR plus 3% due September 2005.....................................         347,375               --
   $200.0 million revolving line of credit, LIBOR plus 2.75% due March 2005..........          80,000               --
Senior notes, 9.25%, due May 2006....................................................         425,000           425,000
Senior subordinated notes, 10.5%, due May 2009.......................................         200,000           200,000
Convertible subordinated notes, 5.75%, due May 2003..................................          50,191            53,435
Convertible subordinated notes, 5%, due March 2007...................................         258,750               --
Note payable, interest at bank's prime,
   due in installments with balance due April 2004...................................             --             11,472
Other, primarily capital lease obligations and other debt............................             306               628
                                                                                        -------------     -------------
                                                                                            1,659,122           693,921
Less -- Short-term borrowings and current portion of long-term debt..................         (73,586)           (6,465)
                                                                                        --------------    -------------
                                                                                        $   1,585,536     $     687,456
                                                                                        =============     =============
</TABLE>

     In March 2000, we issued $258.8 million of convertible subordinated notes
due March 2007. The notes accrue interest at a rate of 5% per annum and are
convertible into Amkor common stock at any time at a conversion price of $57.34
per share. The 5.75% convertible subordinated notes due May 2003 are convertible
into Amkor common stock at any time at a conversion price of $13.50 per share.

     In May 2000, we incurred $750.0 million of secured bank debt related to our
acquisition of K1, K2 and K3 and investment in ASI. The secured bank debt
consists of a $900.0 million secured bank facility that includes a $200.0
million revolving credit line and two term loans with interest rates that vary
with LIBOR. The secured bank debt provides for amortization of the drawn amount
over a five to a five and one-half year period and quarterly principal and
interest payments. Under the terms of the secured bank facility, we are required
to make mandatory prepayments out of a portion of any excess cash flow, as
defined in the agreement, as well as out of net proceeds of certain asset sales
and the net proceeds of certain



                                       12
<PAGE>   14
issuances of debt or equity securities, subject to certain exceptions. The bank
facility is secured by our domestic assets, certain intercompany loans and our
equity investment in ASI. The bank facility includes financial covenants, as
well as covenants restricting our ability to incur debt, pay dividends, make
certain investments and payments and encumber or dispose of assets. Such
covenants have been amended in 2000 and January 2001 to provide for greater
flexibility in making investments in acquisitions, joint ventures and capital
expenditures. The senior notes and senior subordinated notes also contain
restrictive covenants.

     In connection with our issuance of the convertible notes due March 2007 and
our secured bank facility during the year ended December 31, 2000, we incurred
debt issuance costs of $9.3 million and $20.2 million. The debt issuance costs
have been deferred and amortized over the life of the associated debt and are
included, net of amortization, in other noncurrent assets in the consolidated
balance sheet.

     During the fourth quarter of 1999 and continuing into 2000, we completed an
early conversion of the 5.75% convertible subordinated notes due May 2003.
During the year ended December 31, 2000, we exchanged approximately 248,000
shares of our common stock for $3.2 million of the convertible subordinated
notes. During the year ended December 31, 1999, we exchanged 12.1 million shares
of common stock for $153.6 million of convertible subordinated notes. The fair
value of the shares of common stock issued in excess of the shares required for
conversion of the notes was $0.3 million and $17.4 million for the year ended
December 31, 2000 and 1999, respectively, and such amounts were expensed and are
included in other expense in the accompanying consolidated statements of income.

         At December 31, 1999, short-term borrowings consisted of various
operating lines of credit and working capital facilities which were repaid in
their entirety and no short-term facilities were outstanding as of December 31,
2000. For 1999, the weighted average interest rate on these borrowings was
11.7%.

         Interest expense related to short-term borrowings and long-term debt is
presented net of interest income of $14.2 million, $19.9 million and $9.1
million in 2000, 1999 and 1998, respectively, in the accompanying consolidated
statements of income. The principal payments required under long-term debt
borrowings at December 31, 2000 are as follows: 2001 - $73.6 million, 2002 -
$73.6 million, 2003 - $123.7 million, 2004 - $238.1 million, 2005 - $266.4
million and thereafter - $883.8 million.


8.   STOCKHOLDERS' EQUITY

     In connection with a $410.0 million private equity offering in May 2000, we
issued 20.5 million shares of our common stock and granted warrants that expire
four years from issuance to purchase 3.9 million additional shares of our common
stock at $27.50 per share. The estimated fair value of the stock warrants of
$35.0 million is included in additional paid-in capital on our consolidated
balance sheet.


9.  EMPLOYEE BENEFIT PLANS

U.S. Defined Contribution Plan

         Our company has a defined contribution benefit plan covering
substantially all U.S. employees. Employees can contribute up to 13% of salary
to the plan and the company matches 75% of the employee's contributions up to a
defined maximum on an annual basis. The expense for this plan was $1.8 million,
$1.8 million and $1.4 million in 2000, 1999 and 1998, respectively.

Philippine Pension Plan

         Our Philippine subsidiaries sponsor a defined benefit plan that covers
substantially all employees who are not covered by statutory plans. Charges to
expense are based upon costs computed by independent actuaries.



                                       13
<PAGE>   15
         The components of net periodic pension cost for the our Philippine
defined benefit plan are as follows:

<TABLE>
<CAPTION>
                                                                                       YEAR ENDED DECEMBER 31,
                                                                              -----------------------------------------
                                                                                  2000           1999           1998
                                                                                  ----           ----           ----
                                                                                           (in thousands)
<S>                                                                           <C>           <C>            <C>
Service cost of current period.............................................   $    1,862    $    2,153     $      1,618
Interest cost on projected benefit obligation..............................        1,468         1,563            1,209
Expected return on plan assets.............................................       (1,092)       (1,083)            (879)
Amortization of transition obligation and actuarial
   gains/losses............................................................           66           137               79
                                                                              ----------    ----------     ------------
         Total pension expense.............................................   $    2,304    $    2,770     $      2,027
                                                                              ==========    ==========     ============
</TABLE>

         It is our policy to make contributions sufficient to meet the minimum
contributions required by law and regulation. The following table sets forth the
funded status of our Philippine defined benefit pension plan and the related
changes in the projected benefit obligation and plan assets:

<TABLE>
<CAPTION>
                                                                                                  2000             1999
                                                                                                  ----             ----
                                                                                                  (in thousands)
<S>                                                                                         <C>              <C>
Change in projected benefit obligation:
   Projected benefit obligation at beginning of year....................................    $      15,384    $    13,567
   Service cost.........................................................................            1,862          2,153
   Interest cost........................................................................            1,468          1,563
   Actuarial loss (gain)................................................................            1,598           (356)
   Foreign exchange gain................................................................           (2,982)          (388)
   Benefits paid........................................................................             (745)        (1,155)
                                                                                            --------------   -----------
   Projected benefit obligation at end of year..........................................           16,585         15,384
                                                                                            -------------    -----------
Change in plan assets:
   Fair value of plan assets at beginning of year.......................................           10,669          8,204
   Actual return on plan assets.........................................................            2,187          2,107
   Employer contribution................................................................            1,542          1,748
   Foreign exchange gain................................................................           (2,068)          (235)
   Benefits paid........................................................................             (745)        (1,155)
                                                                                            --------------   -----------
   Fair value of plan assets at end of year.............................................           11,585         10,669
                                                                                            -------------    -----------
Funded status:
   Projected benefit obligation in excess of plan assets................................            5,000          4,715
   Unrecognized actuarial loss..........................................................           (1,369)        (1,011)
   Unrecognized transition obligation...................................................             (601)          (826)
                                                                                            --------------   -----------
   Accrued pension costs................................................................    $       3,030    $     2,878
                                                                                            =============    ===========
</TABLE>

         The discount rate used in determining the projected benefit obligation
was 12% as of December 31, 2000, 1999 and 1998. The rates of increase in future
compensation levels was and 11% as of December 31, 2000, 1999 and 1998. The
expected long-term rate of return on plan assets was 12% as of December 31,
2000, 1999 and 1998. These rates reflect economic and market conditions in the
Philippines. The fair value of plan assets include an investment in our common
stock of approximately $1.6 million at December 31, 2000.

Korean Severance Plan

         Our Korean subsidiary participates in an accrued severance plan that
covers employees and directors with one year or more of service. Eligible plan
participants are entitled to receive a lump-sum payment upon termination of
their employment, based on their length of service and rate of pay at the time
of termination. Accrued severance benefits are estimated assuming all eligible
employees were to terminate their employment at the balance sheet date. The
contributions to national pension fund made under the National Pension Plan of
the Republic of Korea are deducted from accrued severance benefit liabilities.
Contributed amounts are refunded from the National


                                       14
<PAGE>   16
Pension Plan to employees on their retirement. Accrued severance benefits are as
follows:

<TABLE>
<CAPTION>
                                                                                                           DECEMBER 31,
                                                                                                                2000
                                                                                                         ---------------
                                                                                                          (IN THOUSANDS)
<S>                                                                                                       <C>
Balance at December 31, 1999.........................................................................     $       1,794
Increase resulting from the acquisition of K1, K2 and K3.............................................            23,195
Provision of severance benefits......................................................................            12,276
Severance payments...................................................................................            (1,894)
Gain on foreign currency translation ................................................................            (3,925)
                                                                                                          -------------
                                                                                                                 31,446
Payments remaining with the Korean National Pension Fund.............................................            (1,941)
                                                                                                          -------------
Balance at December 31, 2000.........................................................................     $      29,505
                                                                                                          =============
</TABLE>


10.  INCOME TAXES

         The provision for income taxes includes federal, state and foreign
taxes currently payable and those deferred because of temporary differences
between the financial statement and the tax bases of assets and liabilities. The
components of the provision for income taxes follow:

<TABLE>
<CAPTION>
                                                                                      FOR THE YEAR ENDED DECEMBER 31,
                                                                                  --------------------------------------
                                                                                   2000            1999          1998
                                                                                   ----            ----          ----
                                                                                              (in thousands)
<S>                                                                               <C>            <C>           <C>
Current:
   Federal.....................................................................   $    2,149     $    9,928    $  18,316
   State ......................................................................         (159)         1,746        4,426
   Foreign.....................................................................       28,550          5,508          724
                                                                                   ---------     ----------    ---------
                                                                                      30,540         17,182       23,466
                                                                                    --------     ----------    ---------
Deferred:
   Federal.....................................................................       (6,869)           532          282
   Foreign.....................................................................       (1,386)         8,886          968
                                                                                  ----------     ----------    ---------
                                                                                      (8,255)         9,418        1,250
                                                                                  ----------     ----------    ---------
         Total provision.......................................................   $   22,285     $   26,600    $  24,716
                                                                                  ==========     ==========    =========
</TABLE>

         The reconciliation between the taxes payable based upon the U.S.
federal statutory income tax rate and the recorded provision follows:

<TABLE>
<CAPTION>
                                                                                      FOR THE YEAR ENDED DECEMBER 31,
                                                                                  --------------------------------------
                                                                                   2000            1999          1998
                                                                                   ----            ----          ----
                                                                                              (in thousands)
<S>                                                                               <C>            <C>           <C>
Federal statutory rate.........................................................   $   69,101     $   36,162    $  35,257
Deferred taxes established at termination of S Corp. status of AEI.............          --             --        (1,954)
Income of foreign subsidiaries subject to tax holiday..........................      (43,367)       (14,860)      (9,129)
Foreign exchange (losses) gains recognized for income taxes....................         (382)         8,023       12,602
Change in valuation allowance..................................................        5,898        (11,084)      (8,079)
Difference in rates on foreign subsidiaries....................................       (8,142)          (630)      (3,377)
State taxes, net of federal benefit............................................         (661)         2,028        2,877
Goodwill and other permanent differences.......................................         (162)         6,961        1,019
S Corp. status of AEI through April 28, 1998...................................          --             --        (4,500)
                                                                                  ----------     ----------    ---------
         Total.................................................................   $   22,285     $   26,600    $  24,716
                                                                                  ==========     ==========    =========
</TABLE>


                                       15

<PAGE>   17
         The following is a summary of the significant components of the
deferred tax assets and liabilities:

<TABLE>
<CAPTION>
                                                     FOR THE YEAR ENDED DECEMBER 31,
                                                    ---------------------------------
                                                      2000        1999         1998
                                                    --------     -------     --------
                                                              (in thousands)
<S>                                                 <C>          <C>         <C>
Deferred tax assets (liabilities):
   Retirement benefits .........................    $    378     $   463     $  1,038
   Other accrued liabilities ...................       1,934       2,579        4,571
   Receivables .................................         517         523        1,717
   Inventories .................................       5,762       3,892        2,583
   Property, plant and equipment ...............      (3,607)     (2,539)      (2,139)
   Unrealized foreign exchange losses ..........       8,535         480       15,805
   Unrealized foreign exchange gains ...........      (2,013)     (2,175)      (3,530)
   Loss on sale of investment in ASI ...........         861       1,620        1,620
   Net operating loss carryforward and carryback       6,457          --        3,646
   Minimum corporate income tax ................          --          --        1,182
   Equity in earnings of investees .............         943       1,148           --
   Capital loss carryforward ...................         568          --           --
     Other .....................................          --         191          191
                                                    --------     -------     --------
     Net deferred tax asset ....................      20,335       6,182       26,684
   Valuation allowance .........................      (8,735)     (2,837)     (13,921)
                                                    --------     -------     --------
   Net deferred tax asset ......................    $ 11,600     $ 3,345     $ 12,763
                                                    ========     =======     ========
</TABLE>

         As a result of our 2000 acquisition of K1, K2 and K3, we received the
benefit of a 100% tax holiday that applies for seven years from the acquisition
and then a 50% tax holiday for three additional years. During 2000 one of our
Philippine subsidiaries received a partial tax holiday. The 2000 granted tax
holidays are in addition to the previously granted holidays in Korea and the
Philippines. The foreign exchange (losses) gains recognized for income taxes
relate to unrecognized net foreign exchange (losses) gains on U.S. dollar
denominated monetary assets and liabilities. During 2000 our Philippine
subsidiary realized net foreign exchange gains and losses for book purposes
which are deferred for tax. Our ability to utilize these assets depends on the
timing of the settlement of the related assets or liabilities and the amount of
taxable income recognized within the Philippine statutory carryforward limit of
three years. During 2000, our Philippine subsidiary established a valuation
allowance for a portion of the related deferred tax assets. During 2000 the
company recognized certain reductions in its current liability through
additional tax credits including a U.S. research and development credit and
recognized certain reductions from prior year tax accruals.

         Our company has U.S. net operating losses for tax purposes totaling
$16.1 million and $1.8 million for 2000 and 1999, available for carryback up to
2 years and carryforward up to 20 years, expiring in 2019 and 2020. Non-U.S.
income before taxes and minority interest was approximately $201 million, $74.0
million and $54.0 million in 2000, 1999 and 1998, respectively. At December 31,
2000, undistributed earnings of non-U.S. subsidiaries totaled approximately
$313.5 million. Deferred tax liabilities have not been recognized for these
undistributed earnings because it is our intention to reinvest such
undistributed earning outside the U.S. An estimated $72.4 million
in U.S. income and foreign withholding taxes would be due if these earnings were
remitted as dividends.

         At December 31, 2000 and 1999 current deferred tax assets of $13.5
million and $5.8 million, respectively, are included in other current assets and
noncurrent deferred tax assets of $2.3 million and $2.3 million, respectively,
are included in other assets in the consolidated balance sheet. The net deferred
tax assets include amounts, which, in our opinion, are more likely than not to
be realizable through future taxable income. In addition, at December 31, 2000
and 1999, noncurrent deferred tax liabilities of $4.2 million and $4.8 million,
respectively, are included in other noncurrent liabilities in the consolidated
balance sheet.

         Our tax returns have been examined through 1994 in the Philippines and
through 1996 in the U.S. The tax returns for open years are subject to changes
upon final examination. Changes in the mix of income from our foreign
subsidiaries, expiration of tax holidays and changes in tax laws or regulations
could result in increased effective tax rates in the future.


                                       16
<PAGE>   18
11.  EARNINGS PER SHARE

     Statement of Financial Accounting Standards ("SFAS") of No. 128, "Earnings
Per Share," requires dual presentation of basic and diluted earnings per share
on the face of the income statement. Basic EPS is computed using only the
weighted average number of common shares outstanding for the period while
diluted EPS is computed assuming conversion of all dilutive securities, such as
options. The 5% convertible subordinated notes due 2007 and the warrants issued
May 2000 are antidilutive for the periods presented and therefore are not
included in the EPS calculation. The basic and diluted per share amounts for the
years presented, including unaudited pro forma earnings per share for December
31, 1998, are calculated as follows:

<TABLE>
<CAPTION>
                                                                                               WEIGHTED
                                                                               EARNINGS     AVERAGE SHARES      PER SHARE
                                                                              (NUMERATOR)    (DENOMINATOR)       AMOUNT
                                                                              -----------    -------------       --------
                                                                                             (in thousands)
<S>                                                                           <C>           <C>                 <C>
Earnings per Share -- Year Ended December 31, 2000
   Basic earnings per share.................................................    $ 154,153           145,806     $    1.06
   Impact of convertible notes..............................................        2,414             3,744
   Dilutive effect of options...............................................          --              3,673
                                                                                ---------    --------------     ---------
   Diluted earnings per share...............................................    $ 156,567           153,223     $    1.02
                                                                                =========    ==============     =========
Earnings per Share -- Year Ended December 31, 1999
   Basic earnings per share.................................................    $  76,719           119,341     $    0.64
   Impact of convertible notes..............................................        8,249            14,228
   Dilutive effect of options...............................................          --              1,498
                                                                                ---------    --------------     ---------
   Diluted earnings per share...............................................    $  84,968           135,067     $    0.63
                                                                                =========    ==============     =========
Pro forma Earnings per Share -- Year Ended December 31, 1998
   (unaudited)
   Basic pro forma earnings per share.......................................    $  70,960           106,221     $    0.67
   Impact of convertible notes..............................................        5,672            10,334
   Dilutive effect of options...............................................          --                 41
                                                                                ---------    --------------     ---------
   Diluted pro forma earnings per share.....................................    $  76,632           116,596     $    0.66
                                                                                =========    ==============     =========
Earnings per Share -- Year Ended December 31, 1998
   Basic earnings per share.................................................    $  75,460           106,221     $    0.71
   Impact of convertible notes..............................................        5,672            10,334
   Dilutive effect of options...............................................          --                 41
                                                                                ---------    --------------     ---------
   Diluted earnings per share...............................................    $  81,132           116,596     $    0.70
                                                                                =========    ==============     =========
</TABLE>

12.  STOCK COMPENSATION PLANS

         1998 Director Option Plan. A total of 300,000 shares of common stock
have been reserved for issuance under the Director Plan. The option grants under
the Director Plan are automatic and non-discretionary. Generally, the Director
Plan provides for an initial grant of options to purchase 15,000 shares of
common stock to each new non-employee director of the company when such
individual first becomes an Outside Director. In addition, each non-employee
director will automatically be granted subsequent options to purchase 5,000
shares of common stock on each date on which such director is re-elected by the
stockholders of the company, provided that as of such date such director has
served on the Board of Directors for at least six months. The exercise price of
the options is 100% of the fair market value of the common stock on the grant
date. The term of each option is ten years and each option granted to an
non-employee director vests over a three year period. The Director Plan will
terminate in January 2008 unless sooner terminated by the Board of Directors.

         1998 Stock Plan. The 1998 Stock Plan generally provides for the grant
to employees, directors and consultants of stock options and stock purchase
rights. Unless terminated sooner, the 1998 Plan will terminate automatically in
January 2008. A total of 5,000,000 shares have been reserved for issuance under
the 1998 Stock Plan with provision for an annual replenishment to bring the
share reserved for issuance under the plan to 5,000,000 shares as of each
January 1.

         Unless determined otherwise by the Board of Directors or a committee
appointed by the Board of Directors, options and stock purchase rights granted
under the 1998 Plan are not transferable by the optionee. Generally, the
exercise price of all stock options granted under the 1998 Plan must be at least
equal to the fair market value of the shares on the date of grant. In general,
the options granted will vest over a four year period and the term of the
options granted under the 1998 Plan may not exceed ten years.

                                       17
<PAGE>   19
         1998 Stock Option Plan for French Employees. Unless terminated sooner,
the French Plan will continue in existence until 2003. The French Plan provides
for the granting of options to employees of our French subsidiaries. A total of
250,000 shares of common stock have been reserved for issuance under the French
Plan with provision for an annual replenishment to bring the share reserved for
issuance under the plan to 250,000 shares as of each January 1. In general,
stock options granted under the French Plan vest over a four year period, the
exercise price for each option granted under the French Plan shall be 100% of
the fair market value of the shares of common stock on the date the option is
granted and the maximum term of the option must not exceed ten years. Shares
subject to the options granted under the French Plan may not be transferred,
assigned or hypothecated in any manner other than by will or the laws of descent
or distribution before the date which is five years after the date of grant.

         A summary of the status of the stock option plans follows:

<TABLE>
<CAPTION>
                                                                                                                 WEIGHTED AVERAGE
                                                                                                NUMBER            EXERCISE PRICE
                                                                                               OF SHARES            PER SHARE
                                                                                               ---------            ------------
<S>                                                                                          <C>                 <C>

    Balance at January 1, 1998..........................................................                --                --
    Granted.............................................................................          3,974,200         $   10.01
    Exercised...........................................................................                --                --
    Cancelled...........................................................................            150,300         $   11.00
                                                                                             --------------         ---------
    Balance at December 31, 1998........................................................          3,823,900         $    9.97
    Granted.............................................................................          1,468,450         $   10.62
    Exercised...........................................................................             75,534         $   10.49
    Cancelled...........................................................................            151,268         $    9.91
                                                                                             --------------         ---------
    Balance at December 31, 1999........................................................          5,065,548         $   10.15
    Granted.............................................................................          5,168,950         $   40.15
    Exercised...........................................................................            418,388         $   10.32
    Cancelled...........................................................................            545,909         $   33.87
                                                                                             --------------         ---------
    Balance at December 31, 2000........................................................          9,270,201         $   25.48
                                                                                             ==============         =========

    Options exercisable at:
       December 31, 1998................................................................                --                --
       December 31, 1999................................................................          1,363,644         $    9.82
       December 31, 2000................................................................          2,827,380         $   10.23
</TABLE>

    Significant option groups outstanding at December 31, 2000 and the related
weighted average exercise price and remaining contractual life information are
as follows:

<TABLE>
<CAPTION>
                                                            OUTSTANDING                  EXERCISABLE           WEIGHTED
                                                                     WEIGHTED                     WEIGHTED      AVERAGE
                                                                      AVERAGE                      AVERAGE     REMAINING
                                                          SHARES      PRICE            SHARES       PRICE    LIFE (YEARS)
                                                          ------      -----            ------       -----    ------------
<S>                                                 <C>              <C>        <C>               <C>        <C>
Options with Exercise Price of:
   $50.438 - $62.75.............................           99,150    $ 52.79              --      $    --          9.3
   $33.563 - $49.50.............................        3,760,800    $ 42.98              --      $    --          9.2
   $22.125 - $32.31.............................          621,100    $ 29.76            9,750     $  28.04         9.5
   $14.438 - $21.563............................          535,641    $ 17.83           64,142     $  18.17         9.4
   $9.06 - $13.375..............................        3,585,620    $ 10.45        2,381,659     $  10.65         7.6
   $5.66 - $8.06................................          667,890    $  5.69          371,829     $   5.69         7.9
                                                    -------------               -------------
Options outstanding at December 31, 2000........        9,270,201                   2,827,380
                                                    =============               =============
</TABLE>

                                       18
<PAGE>   20
         A summary of the weighted average fair value of options at grant date
granted during the year ended December 31, 2000, 1999 and 1998 follows:

<TABLE>
<CAPTION>
                                                                                     WEIGHTED AVERAGE      WEIGHTED AVERAGE
                                                                      NUMBER          EXERCISE PRICE          GRANT DATE
                                                                     OF SHARES          PER SHARE            FAIR VALUES
                                                                   -------------       -----------            ---------
<S>                                                               <C>                <C>                   <C>
Options granted during 2000:
    Options whose exercise price equals market
       price on grant date...................................          5,168,950       $     40.15            $   22.46
                                                                   =============       ===========            =========
Options granted during 1999:
    Options whose exercise price equals market
       price on grant date...................................          1,468,450       $     10.62            $    6.33
                                                                   =============       ===========            =========
Options granted during 1998:
    Options whose exercise price is greater than
       the market price on grant date........................             42,600       $     11.00            $    2.22
                                                                   -------------       -----------            ---------
    Options whose exercise price equals market price
       on grant date.........................................          3,901,600       $      9.99            $    4.31
                                                                   -------------       -----------            ---------
    Options whose exercise price is less than
       the market price on grant date........................             30,000       $     10.34            $    4.97
                                                                   =============       ===========            =========
</TABLE>

         In order to calculate the fair value of stock options at date of grant,
we used the Black-Scholes option pricing model. The following weighted average
assumptions were used:

<TABLE>
<CAPTION>
                                                                                      FOR THE YEAR ENDED DECEMBER 31,
                                                                                      -------------------------------
                                                                                   2000            1999          1998
                                                                                   ----            ----          ----
<S>                                                                                <C>            <C>          <C>
   Expected life (in years)....................................................        4             4            4
   Risk-free interest rate.....................................................     6.8%          5.5%         5.4%
   Volatility..................................................................      66%           75%          47%
   Dividend yield..............................................................      --            --           --
</TABLE>

         1998 Employee Stock Purchase Plan. A total of 1,000,000 shares of
common stock have been made available for sale under the Stock Purchase Plan and
an annual increase is to be added on each anniversary date of the adoption of
the Purchase Plan. Employees (including officers and employee directors of the
company but excluding 5% or greater stockholders) are eligible to participate if
they are customarily employed for at least 20 hours per week. The Stock Purchase
Plan permits eligible employees to purchase common stock through payroll
deductions, which may not exceed 15% of the compensation an employee receives on
each payday. Each participant will be granted an option on the first day of a
two year offering period, and shares of common stock will be purchased on four
purchase dates within the offering period. The purchase price of the common
stock under the Purchase Plan will be equal to 85% of the lesser of the fair
market value per share of common stock on the start date of the offering period
or on the purchase date. Employees may end their participation in an offering
period at any time, and participation ends automatically on termination of
employment with the company. The Purchase Plan will terminate in January 2008,
unless sooner terminated by the Board of Directors.

         For the years ended December 31, 2000, 1999 and 1998, employees
purchased common stock shares under the stock purchase plan of 263,498, 586,755
and 0, respectively. The average estimated fair values of the purchase rights
granted during the years ended December 31 2000, 1999 and 1998 based on the
Black-Scholes option pricing model were $12.17, $5.65 and $1.38, respectively.
The following weighted average assumptions were used:

<TABLE>
<CAPTION>
                                                                                   FOR THE YEAR ENDED DECEMBER 31,
                                                                                   -------------------------------
                                                                                   2000          1999          1998
                                                                                   ----          ----          ----
<S>                                                                                <C>           <C>          <C>
   Expected life (in years)....................................................     0.5           0.5          0.6
   Risk-free interest rate.....................................................    6.8%          5.4%         5.5%
   Volatility..................................................................     66%           75%          47%
   Dividend yield..............................................................     --            --           --
</TABLE>

         We account for our stock-based compensation plans in accordance with
Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to
Employees" and the Financial Accounting Standards Board Interpretation No. 44,
"Accounting for Certain Transactions Involving Stock Compensation, an
Interpretation of APB No. 25." Accordingly, compensation cost for stock-based
plans is generally measured as the excess, if any, of the quoted market price of
our company's stock at the date of the grant over the

                                       19
<PAGE>   21
amount an employee must pay to acquire the stock. Had we recorded compensation
expense for our stock compensation plans, as provided by SFAS No. 123,
"Accounting for Stock-Based Compensation," our reported net income and basic and
diluted earnings per share, which reflects pro forma adjustments for income
taxes for 1998, would have been reduced to the pro forma amounts indicated
below:

<TABLE>
<CAPTION>
                            FOR THE YEAR ENDED DECEMBER 31,
                            -------------------------------
                          2000           1999          1998
                       -----------    -----------   -----------
                          (in thousands except per share)
<S>                    <C>            <C>           <C>
Net Income:
      As reported ...  $   154,153    $    76,719   $    70,960
      Pro forma .....  $   127,581    $    72,033   $    69,313
Earnings per share:
   Basic:
      As reported ...  $      1.06    $      0.64   $      0.67
      Pro forma .....  $      0.88    $      0.60   $      0.65
   Diluted:
      As reported ...  $      1.02    $      0.63   $      0.66
      Pro forma .....  $      0.85    $      0.59   $      0.64
</TABLE>

13.  FAIR VALUE OF FINANCIAL INSTRUMENTS

         The estimated fair value of financial instruments has been determined
using available market information and appropriate methodologies; however,
considerable judgment is required in interpreting market data to develop the
estimates for fair value. Accordingly, these estimates are not necessarily
indicative of the amounts that we could realize in a current market exchange.
Certain of these financial instruments are with major financial institutions and
expose us to market and credit risks and may at times be concentrated with
certain counterparties or groups of counterparties. The creditworthiness of
counterparties is continually reviewed, and full performance is anticipated.

         The carrying amounts reported in the balance sheet for short-term
investments, due from affiliates, other accounts receivable, due to affiliates,
accrued expenses and accrued income taxes approximate fair value due to the
short-term nature of these instruments. The methods and assumptions used to
estimate the fair value of other significant classes of financial instruments is
set forth below:

         Cash and Cash Equivalents. Cash and cash equivalents are due on demand
or carry a maturity date of less than three months when purchased. The carrying
amount of these financial instruments is a reasonable estimate of fair value.

         Available for sale investments. The fair value of these financial
instruments was estimated based on market quotes, recent offerings of similar
securities, current and projected financial performance of the company and net
asset positions.

         Long-term debt. The carrying amount of our total long-term debt as
December 31, 2000 was $1,586 million and the fair value based on available
market quotes is estimated to be $1,483 million.

14.  COMMITMENTS AND CONTINGENCIES

         We are involved in various claims incidental to the conduct of our
business. Based on consultation with legal counsel, management does not believe
that any claims, either individually or in the aggregate, to which we are a
party will have a material adverse effect on our financial condition or results
of operations.

         We are disputing certain amounts due under a technology license
agreement with a third party. To date, this dispute has not involved the
judicial systems. We have accrued our estimate of amounts due under this
agreement. However, depending on the outcome of this dispute, the ultimate
amount payable by us, as of December 31, 2000, could be up to $12.6 million.

                                       20
<PAGE>   22
         Net future minimum lease payments under operating leases that have
initial or remaining noncancelable lease terms in excess of one year are:

<TABLE>
<CAPTION>
                                                                                                        December 31, 2000
                                                                                                          (in thousands)
<S>                                                                                                       <C>
   2001...............................................................................................    $      14,548
   2002...............................................................................................           12,627
   2003...............................................................................................            9,130
   2004...............................................................................................            5,935
   2005...............................................................................................            4,817
   Thereafter.........................................................................................           98,869
                                                                                                          -------------
         Total (net of minimum sublease income of $4,403).............................................    $     145,926
                                                                                                          =============
</TABLE>

         Rent expense amounted to $13.7 million, $10.4 million and $7.8 million
for 2000, 1999 and 1998, respectively. We lease office space in West Chester,
Pennsylvania from certain of our stockholders. The lease expires in 2006. We
have the option to extend the lease for an additional 10 years through 2016.
Amounts paid for this lease in 2000, 1999 and 1998 were $1.2 million, $1.1
million and $1.1 million, respectively.

         We have various purchase commitments for materials, supplies and
capital equipment incidental to the ordinary conduct of business. As of December
31, 2000 we had commitments for capital equipment of approximately $63 million.
In the aggregate, such commitments are not at prices in excess of current
market.

15.  SEGMENT INFORMATION

     In accordance with SFAS No. 131, "Disclosures about Segments of an
Enterprise and Related Information," we have two reportable segments, packaging
and test services and wafer fabrication services. These segments are managed
separately because the services provided by each segment require different
technology and marketing strategies.

     Packaging and Test Services. Through our three factories located in the
Philippines and our four factories located in Korea, we offer a complete and
integrated set of packaging and test services including IC packaging design,
leadframe and substrate design, IC package assembly, final testing, burn-in,
reliability testing and thermal and electrical characterization.

     Wafer Fabrication Services. Through our wafer fabrication services
division, we provide marketing, engineering and support services of ASI's deep
submicron CMOS foundry, under a long-term supply agreement.

     We derive substantially all of our wafer fabrication revenues from Texas
Instruments (TI). Total net revenues derived from TI accounted for 14.1% and
16.5% of net revenues in 2000 and 1999, respectively. Total net revenues for
services provided to TI prior to 1999 were less than 10%. Intel Corporation,
accounted for approximately 14.1% and 20.6% of net revenues in 1999 and 1998,
respectively. Revenues for services provided to Intel for 2000 did not exceed
10%. Our company's five largest customers collectively accounted for 34.8%,
43.6% and 41.6% of net revenues in 2000, 1999 and 1998, respectively. The
companies that constitute our five largest customers have varied from year to
year.

         The accounting policies for segment reporting are the same as those
described in Note 1 of Notes to Consolidated Financial Statements. We evaluate
our operating segments based on operating income. Summarized financial
information concerning our reportable segments is shown in the following table.
The "Other" column includes the elimination of inter-segment balances and
corporate assets which include cash and cash equivalents, non-operating balances
due from affiliates, investment in ASI and TSTC and other investments.

                                       21
<PAGE>   23
<TABLE>
<CAPTION>
                                                              PACKAGING         WAFER
                                                              AND TEST        FABRICATION        OTHER          TOTAL
                                                              --------        -----------        -----          -----
                                                                                   (in thousands)
<S>                                                      <C>               <C>             <C>            <C>
2000
   Net revenues......................................    $    2,009,701    $    377,593    $       --     $   2,387,294
   Gross profit......................................           567,381          37,755            --           605,136
   Operating income..................................           299,101          24,275            --           323,376
   Depreciation and amortization including
     debt issue costs................................           330,824           2,085            --           332,909
   Capital expenditures including by acquisition ....           883,752           1,124            --           884,876
   Total assets......................................         2,732,733          46,231        614,320        3,393,284

1999
   Net revenues......................................    $    1,617,235    $    292,737    $       --     $   1,909,972
   Gross profit......................................           319,877          29,279            --           349,156
   Operating income..................................           158,283          17,794            --           176,077
   Depreciation and amortization including
    debt issue costs.................................           178,771           1,561            --           180,332
   Capital expenditures including by acquisition.....           603,173           2,536            --           605,709
   Total assets......................................         1,391,105          37,011        326,973        1,755,089

1998
   Net revenues......................................    $    1,452,285    $    115,698    $       --     $   1,567,983
   Gross profit......................................           243,479          17,354            --           260,833
   Operating income..................................           124,462           8,274            --           132,736
   Depreciation and amortization including
     debt issue costs................................           118,676             563            --           119,239
   Capital expenditures..............................           102,142           5,747            --           107,889
Total assets.........................................           655,695          65,941        281,961        1,003,597
</TABLE>

         The following table presents net revenues by country based on the
location of the customer:

<TABLE>
<CAPTION>
                                                                                       NET REVENUES
                                                                                       ------------
                                                                          2000              1999              1998
                                                                          ----              ----              ----
                                                                                       (in thousands)
<S>                                                                  <C>               <C>               <C>
United States....................................................    $    1,280,896    $    1,316,147    $    1,124,764
Foreign countries................................................         1,106,398           593,825           443,219
                                                                     --------------    --------------    --------------
Consolidated.....................................................    $    2,387,294    $    1,909,972    $    1,567,983
                                                                     ==============    ==============    ==============
</TABLE>

         The following table presents property, plant and equipment based on the
location of the asset:

<TABLE>
<CAPTION>
                                                                               PROPERTY, PLANT AND EQUIPMENT
                                                                               -----------------------------
                                                                          2000              1999              1998
                                                                          ----              ----              ----
                                                                                       (in thousands)
<S>                                                                  <C>               <C>               <C>
United States....................................................    $       84,351    $       48,438    $       48,851
Philippines......................................................           579,619           448,644           366,717
Korea............................................................           813,983           362,144               --
Other foreign countries..........................................               557               542               543
                                                                     --------------    --------------    --------------
Consolidated.....................................................    $    1,478,510    $      859,768    $      416,111
                                                                     ==============    ==============    ==============
</TABLE>

         The following supplementary information presents net revenues allocated
by product family for the packaging and test segment:

<TABLE>
<CAPTION>
                                                                                       NET REVENUES
                                                                                       ------------
                                                                          2000              1999              1998
                                                                          ----              ----              ----
                                                                                       (in thousands)
<S>                                                                  <C>               <C>               <C>
Traditional leadframe............................................    $      647,872    $      559,563    $      603,222
Advanced leadframe...............................................           508,544           412,395           342,866
Laminates........................................................           719,576           561,181           438,034
Test and other...................................................           133,709            84,096            68,163
                                                                     --------------    --------------    --------------
Consolidated.....................................................    $    2,009,701    $    1,617,235    $    1,452,285
                                                                     ==============    ==============    ==============
</TABLE>

                                       22
<PAGE>   24
16.  SUBSEQUENT EVENT (UNAUDITED)

     Joint Venture with Toshiba Corporation. In January 2001, we began operating
a joint venture with Toshiba Corporation providing semiconductor assembly and
test services in Japan. We own 60% of the joint venture company and will acquire
the remaining 40% by the end of the third year of the joint venture operation
for a price to be determined based on the performance of the joint venture
during the three year period but at a purchase price which can not exceed
approximately $40 million subject to exchange rate fluctuations. The joint
venture took over the operations of the existing assembly facility at a Toshiba
facility and continues to provide packaging and test services for Toshiba under
a long-term agreement

     Offering of Senior Notes. On February 9, 2001, we agreed to sell $500.0
million principal amount of our 9 1/4% senior notes due 2008 to certain
purchasers in a private placement. We intend to use the net proceeds of this
offering to repay amounts outstanding under our secured bank facilities, and, in
certain circumstances to use a portion of the net proceeds for general corporate
and working capital purposes. We currently intend to seek amendments from the
secured bank facilities to relax certain of the covenants and to provide us with
additional operating flexibility.

                                       23
<PAGE>   25
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS


The Stockholders and the Board of Directors
Amkor Technology Philippines (P1/P2), Inc.
  and Amkor Technology Philippines (P3/P4), Inc.


We have audited the accompanying combined balance sheet of Amkor Technology
Philippines (P1/P2), Inc. and Amkor Technology Philippines (P3/P4), Inc.,
(formerly Amkor/Anam Pilipinas, Inc. and Amkor/Anam Advanced Packaging, Inc.,
respectively, companies incorporated under the laws of the Republic of the
Philippines and collectively referred to as the "Companies") as of December 31,
2000, and the related combined statements of income, stockholders' equity and
cash flows for the year then ended. These financial statements are the
responsibility of the Companies' management. Our responsibility is to express an
opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.

In our opinion, the combined financial statements referred to above present
fairly, in all material respects, the combined financial position of Amkor
Technology Philippines (P1/P2), Inc. and Amkor Technology Philippines (P3/P4),
Inc. as of December 31, 2000, and the combined results of their operations and
their cash flows for the year then ended, in conformity with accounting
principles generally accepted in the United States of America.


/s/ SyCip Gorres Velayo & Co.
    ----------------------------

Makati City, Philippines
January 18, 2001


                                       24

<PAGE>   26
                    REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

To Amkor Technology, Inc.:

We have audited the accompanying consolidated balance sheet of Amkor Technology,
Inc. and its subsidiaries as of December 31, 1999, and the related consolidated
statements of income, stockholders' equity and cash flows for the years ended
December 31, 1998 and 1999. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion on these
financial statements based on our audits. We did not audit the financial
statements of Anam Semiconductor, Inc. ("ASI") (See Note 2), the investment in
which is reflected in the accompanying 1999 financial statements using the
equity method of accounting. The investment in ASI represents 2% of total assets
at December 31, 1999 and the equity in its net loss represents 2% of net income
before the equity in loss of investees in 1999. In addition, we did not audit
the financial statements of Amkor Technology Korea, Inc., ("ATK"), a
wholly-owned subsidiary, which statements reflect total assets and total
operating income of 35% and 6%, respectively, of the related consolidated totals
in 1999. The statements of ASI and ATK were audited by other auditors whose
reports have been furnished to us and our opinion, insofar as it relates to
amounts included for ASI and ATK, is based solely on the reports of the other
auditors.

We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.

In our opinion, based upon our audits and the reports of other auditors, the
financial statements referred to above present fairly, in all material respects,
the consolidated financial position of Amkor Technology, Inc. and its
subsidiaries as of December 31, 1999, and the results of their operations and
their cash flows for the years ended December 31, 1998 and 1999, in conformity
with accounting principles generally accepted in the United States.


/s/ Arthur Andersen LLP
Philadelphia, Pennsylvania
February 3, 2000


                                       25
<PAGE>   27
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.

(c)  Exhibits.

23.1     Consent of PricewaterhouseCoopers LLP
23.2     Consent of SyCip Gorres Velayo & Co.
23.3     Consent Samil Accounting Corporation
23.4     Consent of Arthur Andersen LLP
23.5     Consent of Siana Carr and O'Connor, LLP
23.6     Consent of Ahn Kwon & Company

                                   SIGNATURES


        Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                            AMKOR TECHNOLOGY, INC.

                                            By: /s/ KENNETH T. JOYCE
                                            ------------------------
                                            Kenneth T. Joyce
                                            Chief Financial Officer

                                            Dated: February 16, 2001

                                       26

