Toshiba Corp. (6502.TO) said Tuesday it will set up a system LSI joint venture with two semiconductor assembly companies in Japan.

The company said it, Oita Prefecture-based Nakaya Microdevices Corp. and U.S.-based Amkor Technology Inc. (AMKR) signed a memorandum of understanding regarding their intent to form a joint venture.

The joint venture, which is expected to start operations this October, will provide system LSI assembly and testing services.

-By Ayai Tomisawa, Dow Jones Newswires, 813-6895-7568, ayai.tomisawa@dowjones.com