<PAGE>
 
                                                                   EXHIBIT 10.86

                    =======================================

                    Agreement for Subcontract Manufacturing

                    =======================================


Date    :  Sept. 5, 1995

Parties :  Microelectronic Packaging (S) Pte Ltd
           1003 Bukit Merah Central #07-07
           Singapore 0315

           (hereinafter "MPS")

           PT Ironhill
           Komplex Kebon Jeruk Baru
           Blok A No., 13-14
           Jakarta Barat
           Indonesia

           (hereinafter "PTI")

This agreement is pursuant to an agreement between Microelectronic Packaging Inc
and Innoventure (S) Pte Ltd dated 29 July 1993 (hereinafter "the Principal 
                                  ------------
Agreement") and a Novation Agreement between the same parties dated        and 
sets out the terms of the subcontract manufacturing arrangement now in operation
between MPS and PTI.

                             Operative provisions

1.  Object

    PTI will manufacture pressed ceramic products including CERDIPS (hereinafter
"the Goods") according to specifications of MPS exclusively for MPS on the terms
herein stated.

2.  Requirement Forecasts and Orders

2.1 MPS will provide PTI monthly with a forecast of its requirements for the 
Goods for the following six months.
<PAGE>
2.2  Monthly forecasts may be followed by a formal purchase order (hereinafter 
"Purchase Order") from MPS but MPS shall be under no obligation to order all or 
any of or no more than the quantities indicated in the forecasts.

2.3  MPS may by two months notice revise any purchase order.

3. Factory and Labour

   The subcontract manufacture of the Goods shall be undertaken at PTI's 
premises at Komplex Kebon Jeruk Baru, Blok A No. 13-14, Jakarta Barat, Indonesia
and PTI shall employ sufficient and suitable labour and management exclusively 
to manufacture the Goods.

4. Delivery and Risk

4.1 The prices agreed for the Goods include the cost of delivery to MPS's 
premises in Singapore or such other designation (in Singapore or elsewhere) as 
may be shown in the Purchase Order.

4.2 Risk in the Goods passes to MPS only upon delivery.

5.  Payment

    Unless otherwise stated in the Purchase Order payment for the Goods 
comprised in each consignment delivered shall become due at the end of 14 days 
from receipt of the consignment in the currency stated in the Purchase Order and
shall be effected by telex transfer into the bank account of PTI notified by 
PTI.

6.  Quality and Guarantee

6.1 The Goods must conform in all respects with the specifications in 
QA-0101--06 and QA-0401-14 or revisions thereof from time to time and other 
requirements or description stated in the Purchase Order and free from defects.

6.2 PTI gurantees to repair or replace free of charge such quantities of the 
Goods that are defective provided such defect arises from faulty workmanship or 
materials
<PAGE>

and notice of the defect is given to PTI immediately such defect is discovered.

7.  Confidentiality

    PTI shall keep confidential and shall not disclose to third parties any 
technical or commercial information it has acquired or may acquire relating to 
MPS, the Goods, the Equipment and/or the manufacturing methods and processes.

8.  Equipment

8.1 MPS will make available to PTI free of hire or other charge the equipment 
shown in the Schedule hereto and such other equipment as may from time to time 
be required for the manufacture of the Goods to meet the requirements of MPS 
(hereinafter "the Equipment") but PTI shall be responsible for the cost of 
installation of the Equipment at its premises.

8.2 The Equipment shall remain the property of MPS notwithstanding that it may 
have become affixed or attached to land or building. PTI shall not acquire title
to or other interest in the Equipment and shall at no time do or permit to be 
done any act or thing which might prejudice or jeopardise the rights of MPS in 
and to the Equipment.

8.3 MPS make no warranty regarding the Equipment as to suitability or risk to 
health or otherwise and PTI uses the same entirely at its own risk.

8.4 PTI shall when so required by MPS purchase additional equipment or equipment
to replace all or any part of the Equipment.

9.  Production Costs

    PTI shall be solely responsible for the entire cost of production without 
recourse to MPS.

10. Technical Assistance

    As and when requested by PTI or when MPS shall deem necessary, MPS may at 
the cost and expense of PTI,

<PAGE>
 
despatch such numbers of its own staff or other suitably qualified persons to 
advise on technical aspects of production of the Goods, the operation of the 
plant and equipment and/or the installation of the Materials Requirements 
Planning (MRP) System.

11.  Price Discount

     After PTI shall have made a net profit of US$4.5 million from the 
subcontract manufacturing for MPS, (calculated from the inception of the 
subcontract manufacturing arrangement) or after 5 years from January 1, 1995 
whichever earlier, all subsequent prices of the Goods over a specified period of
time shall be discounted by an amount equivalent to 50% of the net profits of 
PTI over the corresponding period in the fiscal year immediately preceding.

12.  Assignment and Sub contracting

     Neither party shall assign or transfer any of its rights or obligations 
under this Agreement except with prior written consent of the other and PTI may 
not sub contract any manufacturing or production.

13.  Severability

     If any of the provisions of this Agreement shall be void or unenforceable, 
such provision/s shall be deemed deleted and the remaining provisions of this 
Agreement shall continue in full force and effect.

14.  Waivers, forbearance and variation

     The rights of parties shall not be prejudiced or restricted by any 
indulgence or forbearance extended and no waiver by either party shall operate 
as a waiver for subsequent breach.

15.  This Agreement to prevail

     In the event of ambiguity in the understanding of the present working 
arrangement or conflict with the Principal Agreement or any earlier agreement 
whether written or oral the terms of this Agreement shall
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prevail.

16.  Duration

     This Agreement shall continue till terminated by either party by not less 
than eighteen (18) months notice in writing to the other.

17.  Termination

17.1  This Agreement may be terminated on the happening of any of the following 
events:

(a)  where either party shall be in breach of any of the provisions hereof and
     shall fail after due notice by the other to cease remedy or rectify such
     breach satisfactorily;

(b)  if either party shall pass a resolution for winding up (other than for
     reconstruction) or if a receiver or manager is appointed on behalf of a
     creditor or a party otherwise becomes financially embarrassed and unable to
     carry on business; and

(c)  if either party shall be prevented for any reason beyond its control from 
     carrying out this Agreement.

17.2  Termination shall not affect the rights and liabilities of parties 
existing at the date of termination.

18.  Governing law
    
     The construction validity and performance of this Agreement shall be 
governed in all respects by the law of Singapore and PTI hereby submits to the 
jurisdiction of the courts in Singapore for the resolution of any dispute 
arising hereunder or in connection herewith.
<PAGE>
 
                                   SCHEDULE
                                   --------

                     Part 1 - Equipment already installed
<PAGE>
 
                              SCHEDULE-EQUIPMENT

                       MPS EQUIPMENT SHIPPED TO JAKARTA

<TABLE> 
<CAPTION>
--------------------------------------------------------------------------- 
S/N       Equipment Name               Quantity        Date of Shipment
--------------------------------------------------------------------------- 
<S>       <C>                          <C>             <C> 
1         Tokai 1                      1               June '94
--------------------------------------------------------------------------- 
2         Tokai 2                      1               June '94
--------------------------------------------------------------------------- 
3         AP Furnace                   1               June '94
--------------------------------------------------------------------------- 
4         Shirashi Furnace             1               June '94
--------------------------------------------------------------------------- 
5         Tumbling Barrel              3               June '94
--------------------------------------------------------------------------- 
6         Media Separator              1               June '94
--------------------------------------------------------------------------- 
7         20Q Hobart Mixer             1               June '94
--------------------------------------------------------------------------- 
8         Fixture Trolley              20              June '94
--------------------------------------------------------------------------- 
9         Ceramic Dryer                2               June '94
--------------------------------------------------------------------------- 
10        Powder Blender               1               Work Week 40
--------------------------------------------------------------------------- 
11        10A Press 32 (PT6)           1               WW40
--------------------------------------------------------------------------- 
12        10A Press 33 (PT3)           1               WW40
--------------------------------------------------------------------------- 
13        Edge Loader (EL 3)           1               WW40
--------------------------------------------------------------------------- 
14        Edge Loader (EL 8)           1               WW40
--------------------------------------------------------------------------- 
15        Manual Loader (ML 1)         1               WW40
--------------------------------------------------------------------------- 
16        Manual Loader (ML 2)         1               WW40
--------------------------------------------------------------------------- 
17        Camber Bars                  5               WW40
--------------------------------------------------------------------------- 
18        Tumbling Barrel              1               WW44
--------------------------------------------------------------------------- 
19        Tumbling Barrel              1               WW44
--------------------------------------------------------------------------- 
20        Tumbling Barrel              1               WW44
--------------------------------------------------------------------------- 
21        Bottle Roller                1               WW44
--------------------------------------------------------------------------- 
22        Laminar Flow Hood            1               WW44
--------------------------------------------------------------------------- 
23        Manual BBS Machine           1               WW44
--------------------------------------------------------------------------- 
24        Newlong Printer              1               WW44
--------------------------------------------------------------------------- 
25        Newlong Printer              1               WW44
--------------------------------------------------------------------------- 
26        Vacuum Pack Machine          1               WW44
--------------------------------------------------------------------------- 
27        Stereo Microscope            1               WW49
--------------------------------------------------------------------------- 
</TABLE> 

<PAGE>
 
                             SCHEDULE - EQUIPMENT

                       SSC EQUIPMENT SHIPPED TO JAKARTA


<TABLE> 
<CAPTION> 
--------------------------------------------------------------------
Equipment Name                    1st Shipment          2nd Shipment
                                   (Quantity)            (Quantity)
--------------------------------------------------------------------
<S>                               <C>                   <C>
PRESS:
  Press Machine (10-ton)                8                     5
  Press Machine (20-ton)                2                     0
  Press Die (10-ton)                    1                     0
  Opt Acc         Hopper               10                     5
                  Feeder & Feed Cup    25                     0
                  Vacuum Pad           30                     0
                  Chute                 7                     0
  Auto Double Loading Machine           6                     6
  Auto Edge Loading Machine             5                     5
  Vacuum Cleaner                        1                     0
  Data Collection System                1                     0

--------------------------------------------------------------------
KILN:
  Sintering Kiln                        1                     2

--------------------------------------------------------------------
EPA:
  Eprom Furnace                         2                     0
  EPA G/F Return System                 1                     0
  Belt Cleaning System                  1                     0
  Cleaning System                       1                     0

--------------------------------------------------------------------
PASTE ROOM:    
  Viscometer                            1                     0
  Hobart Mixer Machine                  4                     0
  NC Dryer                              1                     0
  Jar Roller                            2                     0
--------------------------------------------------------------------
</TABLE> 
Equipment Schedule-Page 2

September 1, 1995

<PAGE>
 


                        Part II -- Equipment following
<PAGE>
 
In Witness Whereof the duly authorized officers of the parties have set their 
hands the ___ day of _____ 1995.

Signatures:

/s/ Illegible Signature             /s/ Illegible Signature
-------------------------           ---------------------------
Microelectronic Packaging           PT Tronhill
(Singapore) Pte Ltd