Document:

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                                                                    EXHIBIT 10.9

                               Service Agreement

THIS AGREEMENT entered into this 5th day of August, 1999 by and between Hyundai
Electronics Industries Co. Ltd. ("HEI") having its principal office at San 136-
1, Ami-ri Bubal-cup, Ichon-si, Kyungki-do and ChipPAC Limited (""ChipPAC BVI")
having its principal office at the same address of HEI;

WHEREAS, HEI desires to appoint ChipPAC BVI as its provider of assembly services
for uBGA packages for RDRAM and [redacted*] which HEI will ramp up production
from 1999;

WHEREAS, ChipPAC BVI desires to provide HEI with uBGA packaging services for
RDRAM and [redacted*];

The parties hereto, having consulted, agree to the following.

Article 1      Purposes

     The purpose of the Agreement is to provide for the details necessary for
     HEI to provide the Chips and for ChipPAC BVI to provide HEI with its uBGA
     packaging service to the Chips provided.

Article 2      Packaging Service Equipment

     ChipPAC BVI will invest the capital expenditures to meet HEI's ramp up
     schedule, up to a maximum capacity of [redacted*] RDRAM equivalent units
     per month, subject to HEI's approval. The equipment acquired to provide HEI
     with [redacted*] RDRAM equivalent units ("the Equipment") will be dedicated
     to HEI use.

Article 3      Products

     The semiconductor products ("Products") needed to ChipPAC BVI's packaging
     service under this Agreement shall be listed in Appendix I and the list is
     subject to addition or deletion in accordance with mutual agreement.

Article 4      Order and Purchase of the Products by HEI

     4.1   HEI will ramp up production in 1999 and provide a ramp up schedule
           for 2999 to ChipPAC BVI, which is estimated to be about [redacted*],
           of which [redacted*] units are expected to be [redacted*] and
           [redacted*] in units are to be [redacted*].

     *Confidential treatment requested.

<PAGE>

     4.2   HEI commits to purchase [redacted*] RDRAM equivalent uBGA packages
           per month from [redacted*].

     4.3   If HEI does not purchase the number of RDRAM equivalent uBGA packages
           for which ChipPAC BVI has made a capacity commitment to provide
           exclusively to HEI in any one month period between [redacted*], HEI
           shall reimburse ChipPAC BVI for the depreciation for unused capacity
           which had been committed by ChipPAC BVI. The depreciation period for
           the Equipment will be [redacted*] and the calculation of depreciation
           or the Equipment will be made using straight line depreciation with
           no residual value. Any charge for unabsorbed depreciation will be
           reduced by capacity used for other ChipPAC BVI customers. ChipPAC BVI
           will use its best efforts to find customers to utilize such unused
           capacity.

     4.4   The production schedule and purchasing volume commitment time
           prescribed in Article 4.1, 4.2 and 4.3 may be changed depending upon
           the introduction schedule of Intel's RDRAM and, in such event, the
           term and other timing parameters of this agreement shall be revised
           accordingly.

     4.5   HEI will send ChipPAC BVI a written notice containing HEI's planed
           packaging contract amount for the next three months by 15 days prior
           to the end of each month.

     4.6   ChipPAC BVI shall notify HEI of acceptance of a order within seven
           (7) days from the date of HEI's written order. No response from
           ChipPAC BVI with respect to such order without any special reasons
           hall be regarded as acceptance of an order.

     4.7   HEI shall provide ChipPAC BVI with a rolling 6 month unit forecast.
           These forecasts will be subject to the following limits of accuracy:

           Forecast within one month:             +/- 10%
           Forecast within two months:            +/- 25%
           Forecast within three months:          +/- 50%

           HEI will be financially responsible for inventory and purchase
           commitments for unique

     *Confidential treatment requested.

                                       2
<PAGE>

           material made by ChipPAC BVI ordered on the basis of these forecasts,
           provided that such financial compensation will be limited to the
           amount of the Products which were produced for recent 45 days out of
           the amount of the Product committed to be purchased by HEI under this
           Agreement.

Article 5      Purchase Price

     5.1   The committed prices at which HEI will purchase under this Agreement
           are as follows:

           a.  1999:     [redacted*]
           b.  2000:     [redacted*]
           c.  2001:     [redacted*]
           d.  2002:     [redacted*]

           The unit prices of all RDRAM will be set on the basis of [redacted*]
           balls per unit.

     5.2   The purchase price shall be determined by the mutual agreement
           between HEI and ChipPAC BVI considering the market circumstances by
           fifteen (15) days prior to the date when the relevant year commences
           and the determined purchase price will be applied through the year
           concerned.

     5.3   Should no agreement be reached on the purchase price an independent
           accounting firm will be appointed by the consultation of HEI and
           ChipPAC BVI to determine the purchase price and either party shall
           not raise objection to the result thereof.

Article 6      Supply of Chip

     6.1   In case of acceptance of order by ChipPAC BVI, HEI shall provide
           ChipPAC BVI with Chips required for the packaging of relevant
           Products according to the definite order amount.

     6.2   Chips, provided by HEI under Article 6.1 shall be transported by HEI
           or HEI's designated forwarding

     *    Confidential treatment requested.

                                       3
<PAGE>

           agent to ChipPAC BVI's plant on HEI's own responsibility and at its
           own costs thereof.

     6.3   ChipPAC BVI's inspection of Chips provided by HEI shall be pursuant
           to Appendix II "Chip Inspection Specification" agreed to by HEI and
           ChipPAC BVI in advance. ChipPAC BVI shall notify HEI of the
           inspection result within five (5) days from the date of provision of
           Chips by HEI. Failure to notify during the given period shall be
           deemed as acceptance by ChipPAC BVI and ChipPAC BVI shall no longer
           be entitled to claim for defectiveness of Chips.

     6.4   ChipPAC BVI, in principle, shall procure on its own all raw and
           subsidiary materials that are required for packaging, other than
           Chips provided by HEI. Nonetheless, HEI may be entitled to
           instruct ChipPAC BVI to use certain materials or to provide some
           materials to ChipPAC BVI.

Article 7      Packaging Process

     Process for packaging service which ChipPAC BVI shall provide to HEI under
     the Agreement shall be pursuant to Appending III "Process Baseline
     Specification and other related Specification," agreed to by HEI and
     ChipPAC BVI in advance.

Article 8      Required Date and Delivery

     8.1   ChipPAC BVI shall deliver finished Products to HEI within [redacted*]
           in 1999 and within [redacted*] thereafter from the date of the
           provision of Chips (and Schedule) by HEI provided that the said
           period can be changed upon mutual consent of both parties.

     8.2   Packaging methods for Products shall be pursuant to Appendix IV
           "Packaging Specification."

     8.3   Products, provided to HEI by ChipPAC BVI under Article 8.1, shall be
           forwarded to HEI plants or warehouses which HEI designates by ChipPAC
           BVI or ChipPAC BVI's designated forwarding agents on ChipPAC BVI's
           own responsibility and at its own costs thereof.

     *Confidential treatment requested.
                                       4

<PAGE>

     8.4   The waste materials produced during the packaging process shall be
           provided to HEI.

     8.5   the status of the production of the Products and the information on
           the quality of the Products shall be provided to HEI from time to
           time by ChipPAC BVI.

Article 9      Inspection

     9.1   HEI' inspection of Products provided by ChipPAC BVI shall be
           pursuant to Appendix V : Semiconductor Inspection Specification,"
           agreed to by HEI and ChipPAC BVI in advance.

     9.2   HEI shall send ChipPAC BVI a written notice stating the inspection
           result conducted as prescribed in the Article 9.1 within five (5)
           days from the date of delivery of Products. No notice within the
           given period shall be deemed as acceptance by HEI of the provided
           Products.

Article 10     Payment

     10.1  ChipPAC BVI shall deliver to HEI invoices for the products supplied
           during the relevant month after completing the provision of Product
           to HEI in accordance with the Agreement within five (5) days from
           the end of such month. In case that HEI does not raise any objection
           to such invoice, HEI shall pay ChipPAC BVI the amount within five (5)
           days from the receipt of such invoice.

     10.2  In the event that HEI has opened a letter of credit in consideration
           of selling to its customers the Products which has been provided by
           ChipPAC BVI to HEI, HEI shall, open a domestic letter of credit in
           favor of ChipPAC BVI by the payment date as set forth in Article
           10.1. HEI shall pay cash in US dollar currency or issue a check to
           ChipPAC BVI for the amount not paid by such domestic letter of
           credit.

     10.3  [redacted*]

     *Confidential treatment requested.

                                       5
<PAGE>

     10.4  All payments to be made pursuant to this agreement shall be made in
           US dollar currency.

Article 11     Compensation to HEI for damages

     11.1  In the event the provision of the Products are not completed within
           the time agreed between the Parties, which is attributable to ChipPAC
           BVI's responsibility, ChipPAC BVI shall pay to HEI the liquidated
           damage per one day of delay equal to [redacted*] of the die cost plus
           assembly cost of the Products.

     11.3  In the event any Product provided to HEI by ChipPAC BVI shall not
           satisfy the target yield rate for each period set forth below, which
           is attributable to ChipPAC BVI's responsibility, ChipPAC BVI shall
           pay to HEI the cost to manufacture the Chips used in the Products
           which did not satisfy the yield rate below.

           a.  [redacted*] within the first quarter from the first ordered date;

           b.  [redacted*] within the second quarter from the end of first
               quarter;

           c.  [redacted*] in the event that the number of the product ChipPAC
               BVI provides is [redacted*] or more per month;

           d.  [redacted*] in the event that the number of the product ChipPAC
               BVI provides is [redacted*] or more month;

     Even in the first or second quarter from the first ordered date, if the
     number of the product ChipPAC BVI provides is [redacted*] or more per month
     or [redacted*] or more per month, the target yield rate of [redacted*] will
     be applicable respectively.

Article 12.    Term

     This Agreement shall be effective upon execution and remain in effect until
     June 30, 2002 and it can be renewed by mutual agreement of both parties.

     *    Confidential treatment requested.
                                       6
<PAGE>

Article 13.    Termination

     13.1  This Agreement can be terminated with just causes by either party and
           either Party who intends to terminate this Agreement shall give a
           written notice to the other Party describing the details on the
           breach of the Agreement which, for HEI, shall be limited to
           deficiencies in quality, delivery, yield or competitive price.

     13.2  Either Party in default will have 30 days (hereinafter the
           "correction period") to put forth corrective action plan from the
           date of receipt of above notice. Unless the breach of either Party in
           default is corrected with the correction period or the extended
           correction period set forth below, the other Party can cancel this
           Agreement by providing 90 days written notice. Provided that ChipPAC
           BVI may ask HEI additional period to correct its breach of contract
           within above period and such correction period can be extended
           ("extended correction period") subject to HEI's consent not to be
           unreasonably withheld.

     13.3  If this Agreement is terminated in accordance with Article 13,
           [redacted*].

     13.4  After the transferor ownership of the Equipment to HEI in accordance
           with Article 13.2 and 13.3, HEI will permit the ChipPAC BVI to use
           the Equipment to provide the product with other customers until new
           equipment necessary to provide the ordered products by its customers
           are installed in ChipPAC BVI. In any case, the period for HEI to
           permit ChipPAC BVI to use the Equipment will not exceed [redacted*].

Article 14     Audit on charges for unutilized capacity and materials

     Charges from ChipPAC BVI for [redacted*] and for excess/obsolete material
     purchased for HEI production will be subject to audit by a mutually agreed
     external auditor.

     *Confidential treatment requested.

                                       7
<PAGE>

Article 15     Strategic Relations

     Both parties agree to form strategic relationship to develop next
     generation memory package in which ChipPAC BVI will support future volume.

Article 16     Confidentiality

     16.1  Both parties agree that the contents of this Agreement and certain
           information that each party may supply to the other in the course of
           this Agreement are confidential. Except when it is required for a
           financial audit, or for obtaining financing, or when its disclosure
           is legally required, such as a United States SEC registration
           statement, such confidential information shall not be disclosed to
           third parties without the written consent of the other party. Both
           parties will ensure that information obtained in the course of this
           Agreement will be used only for fulfilling this Agreement, and that
           any employees, consultants, advisors, and financial institutions
           which receive such information are bound by this Article.

     16.2  The obligation for Article 16.1 shall exist during one (1) year after
           the expiation or termination of the Agreement.

Article 17     Force Majeure

     Each party shall not be responsible for failure to perform hereunder due
     to acts of God, national emergency situations, road or port blockades,
     strikes, wars, internal tumult, or force majeure; provided, however, the
     party shall immediately notify of such occurrence to the other party.

Article 18     Others

     18.1  HEI and ChipPAC BVI shall make their best efforts to cooperate with
           each other for the performance of this Agreement.

     18.2  For the matters not provided in this Agreement or the parts where
           there are different opinions for interpretation hereof, both parties
           shall settle them by mutual consultation.

Article 19     Governing Law

                                       8
<PAGE>

     19.1  This Agreement shall be governed by the laws of Republic of Korea.

     19.2  Any disputes arising in connection with and out of to the Agreement
           shall be submitted to Seoul District Court.

                            *      *      *      *

                                       9
<PAGE>

IN WITNESS WHEREOF, the parties have executed this Service Agreement on the day
and year first above written.

Hyundai Electronics Industries Co., Ltd.:

San 136-1,. Ami-ri, Bubal-cup, ichon-si, Kyungki-do
Hyundai Electronic Industrial Co., Ltd.
Representative: Young Hwan Kim
Position: Representative Director, President

/s/ Y.H. Kim
__________________________

ChipPAC Limited
Craigmuir Chambers
Road Town, Tortola
British Virgin Islands
Representative: Richard Parsons, for Westlaw Limited
Position: Director

/s/ R. Parsons
--------------------------

Appendices do not exist.<PAGE>

                                                                   Exhibit 10.11
                                                                   -------------

                          PATENT SUBLICENSE AGREEMENT
                          ---------------------------

     THIS PATENT SUBLICENSE AGREEMENT (the "Agreement") is entered into as of
the Effective Time by and between Hyundai Electronics Industries Co., Ltd.,
Hyundai Jeonja Bldg., 66, Jeokseon-dong, Chongro-ku, Seoul, Korea (hereinafter
called "Hyundai"), and ChipPAC Limited, Craigmuir Chambers, P.O. Box 71, Road
Town, Tortola, British Virgin Islands (hereinafter called "ChipPAC").

     WHEREAS, Hyundai is a party to that certain Patent License Agreement (the
"Motorola License Agreement") dated December 20, 1994, as amended by
Hyundai/Motorola Letter Agreements dated January 11, 1995, August 5, 1998 and
July 27, 1999, by and between Hyundai and Motorola, Inc., a Delaware corporation
("Motorola");

     WHEREAS, in connection with, and as a condition to the consummation of, the
transactions contemplated by that certain Agreement and Plan of Recapitalization
and Merger dated March 13, 1999, as amended, by and among Hyundai, Hyundai
Electronics America, ChipPAC, Inc. and ChipPAC Merger Corp. (the
"Recapitalization Agreement"), Hyundai has agreed to grant to ChipPAC, and
ChipPAC desires to receive, a sublicense under the Motorola License Agreement;

     WHEREAS, ChipPAC desires to retain such sublicense under the Motorola
License Agreement once ChipPAC ceases to be a subsidiary of Hyundai following
the Closing (as defined in the Recapitalization Agreement);

     WHEREAS, ChipPAC also desires the right to sublicense its wholly-owned
subsidiaries under the Motorola License Agreement once it ceases to be a
subsidiary of Hyundai following the Closing; and

     WHEREAS, Motorola has consented to the grant of such sublicense to ChipPAC
as well as the right for ChipPAC to retain such sublicense once it ceases to be
a subsidiary of Hyundai and the right for ChipPAC to grant further sublicenses
to its wholly-owned subsidiaries once it ceases to be a subsidiary of Hyundai;

     NOW THEREFORE, in consideration of the mutual covenants and conditions
hereinafter set forth, and for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties agree as follows:
<PAGE>

                            SECTION 1 - DEFINITIONS
                            -----------------------

     1.1  Subsidiary(ies) means a corporation, company, or other entity which
is, now or hereafter, wholly owned or controlled, directly or indirectly, by a
party hereto, but such corporation, company or other entity shall be deemed to
be a Subsidiary only so long as such ownership or control exists.

     1.2  Semiconductive Material means any material whose conductivity is
intermediate to that of metals and insulators at room temperature and whose
conductivity, over some temperature range, increases with increases in
temperature. Such material shall include but not be limited to refined products,
reaction products, reduced products, mixtures and compounds.

     1.3  Integrated Circuit Structure means an integral unit consisting
primarily of a plurality of active and/or passive circuit elements associated
on, or in, a unitary body of Semiconductive Material for performing electrical
or electronic functions and, if provided therewith, such unit includes housing
and/or supporting means therefor.

     1.4  Semiconductor Element means a device other than an Integrated Circuit
Structure consisting primarily of a body of Semiconductive Material having a
plurality of electrodes associated therewith, whether or not said body consists
of a single Semiconductive Material or of a multiplicity of such materials, and
whether or not said body includes one or more layers or other regions
(constituting substantially less than the whole of said body) of a material or
materials which are of a type other than Semiconductive Material and, if
provided therewith, such device including housing and/or supporting means
therefor.

     1.5  Manufacturing Apparatus means as to each party hereto, any
instrumentality or aggregate of instrumentalities primarily designed for use in
the fabrication of that party's Licensed Products (as hereinafter defined).

     1.6  Circuit(s) means a plurality of active and/or passive elements for
generating, receiving, transmitting, storing, transforming or acting in response
to an electrical signal.

     1.7  Microprocessor(s) means one or more Integrated Circuit Structures
containing functional elements including registers, control logic, decision
logic, and input-output circuitry appropriately coupled to interconnections
which may include internal buses such as data buses, address buses, or control
buses and having a capability of executing temporarily or permanently stored
program instructions or microinstructions; and which may also have included on
said Integrated Circuit Structures, memory, clocks, input-output interface
circuitry, or other electronic functions ordinarily associated with or connected
to central processing units.

     1.8  Input-Output Adaptor(s) means one or more Integrated Circuit
Structures which are adapted to provide an interface between a Microprocessor
and any instrumentality or aggregate of instrumentalities adapted to compute,
classify, process, transmit, receive, retrieve,

                                      -2-
<PAGE>

originate, switch, store, display, manifest, measure, detect, record, reproduce,
handle, or utilize any form of information, intelligence or data for business,
scientific, control or other purposes, but shall not include such
instrumentality or aggregate of instrumentalities, per se.

     1.9   System means one or more Circuit(s) whether or not combined with one
or more active and/or passive elements for performing electrical or electronic
functions, whether or not a housing and/or supporting means for said circuitry
is included.

     1.10  Electrical Method means a method or steps for using Circuit(s) or
System(s), whether or not combined with one or more active and/or passive
element(s), for performing electrical or electronic function(s).

     1.11  Motorola Patents shall have the same meaning ascribed to such term in
the Motorola License Agreement.

     1.12  ChipPAC Patents means all classes or types of patents, utility
models, design patents and applications of the aforementioned of all countries
of the world which, prior to the date of expiration or termination of the
Motorola License Agreement are:

          (i)  issued, published or filed, and which arise out of inventions
               made solely by one or more employees of ChipPAC, or

          (ii) are acquired by ChipPAC;

and under which and to the extent to which and subject to the conditions under
which ChipPAC may have, as of the Effective Time of this Agreement, or may
thereafter during the term of this Agreement acquire, the right to grant
licenses or rights of the scope granted herein without the payment of royalties
or other consideration to third persons, except for payments to third persons
(a) for inventions made by said third persons while engaged by ChipPAC and (b)
as consideration for the acquisition of such patents, utility models, design
patents and applications.

     1.13  Subsidiary Patents means all classes or types of patents, utility
models, design patents and applications of the aforementioned of all countries
of the world which, prior to the date of expiration or termination of the
Motorola License Agreement are:

          (i)  issued, published or filed, and which arise out of inventions
               made solely by one or more employees of a sublicensed ChipPAC
               Subsidiary, or

          (ii) are acquired by a sublicensed ChipPAC Subsidiary;

and under which and to the extent to which and subject to the conditions under
which such sublicensed ChipPAC Subsidiary may have, as of the effective date of
such sublicense from ChipPAC, or may thereafter during the term of such
sublicense acquire, the right to grant

                                      -3-
<PAGE>

licenses or rights of the scope granted herein without the payment of royalties
or other consideration to third persons, except for payments to third persons
(a) for inventions made by said third persons while engaged by such sublicensed
ChipPAC Subsidiary and (b) as consideration for the acquisition of such patents,
utility models, design patents and applications.

     1.14   Licensed Motorola Product(s) or Licensed ChipPAC Product(s), as the
case may be, means any one or more of the following items, to the extent they
are covered by one or more claims of the ChipPAC Patents, the Subsidiary Patents
or the Motorola Patents, as applicable, whether or not an item is incorporated
in more comprehensive equipment:

     1.14.1 Semiconductive Material(s);

     1.14.2 Integrated Circuit Structure(s);

     1.14.3 Semiconductor Element(s);

     1.14.4 Circuit(s);

     1.14.5 System(s);

     1.14.6 Circuit(s) and System(s) employing an Electrical Method(s);

     1.14.7 Microprocessor(s); and

     1.14.8 Input-Output Adaptors.

     1.15   Licensed Product(s), when used alone, means Licensed Motorola
Product(s) and/or Licensed ChipPAC Product(s), as the case may be.

     1.16   ChipPAC Korea means ChipPAC Korea Company Ltd., a corporation
incorporated under the laws of the Republic of Korea.

     1.17   ChipPAC Shanghai means, collectively, Hyundai Electronics (Shanghai)
Company Ltd. (in process of changing its name to ChipPAC (Shanghai) Company
Limited) and ChipPAC Assembly & Test (Shanghai) Co., Ltd., each a company
limited and a wholly foreign owned entity under the laws of the People's
Republic of China.

     1.18   Effective Time means the moment of time immediately prior to the
Closing.

     1.19   Closing shall have the same meaning ascribed to such term in the
Recapitalization Agreement.

                                      -4-
<PAGE>

              SECTION 2 - RIGHTS AND OBLIGATIONS PRIOR TO CLOSING
              ---------------------------------------------------

     2.1  In accordance with Section 3.7 of the Motorola License Agreement as
                             -----------
modified by that certain letter agreement between Hyundai and Motorola dated
July 27, 1999, beginning as of the Effective Time and continuing for so long as
ChipPAC remains a Hyundai subsidiary (as defined in the Motorola License
Agreement):

          2.1.1.  Hyundai extends to ChipPAC, for any time prior to the
Effective Time, Motorola's release, acquittal and discharge from any and all
claims or liability for infringement or alleged infringement of any Motorola
Patents under which a license or a right has been granted by Motorola to or for
Hyundai pursuant to the Motorola License Agreement; and

          2.1.2.  Hyundai grants to ChipPAC, subject to the provisions of
Section 2.2 hereof, a non-exclusive, royalty-free, non-transferable sublicense
-----------
throughout the world under the Motorola Patents, without the right to
sublicense;

                  (a)  to make (including to make for others, whether or not
of their design), use, lease, sell, or otherwise dispose of, but not to have
made, Licensed ChipPAC Products of the same or similar type as those made, used,
leased, sold or otherwise disposed of by ChipPAC, Inc., ChipPAC Korea or ChipPAC
Shanghai in the conduct of their business prior to the Effective Time, and to
practice any process or method involved in the manufacture or use thereof, and

                  (b)  to make, use and have made Manufacturing Apparatus of
the same or similar type as that made or used by ChipPAC, Inc., ChipPAC Korea or
ChipPAC Shanghai in the conduct of their business prior to the Effective Time,
and to practice any process or method involved in the use thereof, and

                  (c)  to assemble for itself and for others the items listed in
Section 1.14, to the extent such items are of the same or similar type as those
------------
items assembled by ChipPAC, Inc., ChipPAC Korea or ChipPAC Shanghai in the
conduct of their business prior to the Effective Time; and

          2.1.3.  Hyundai extends to users of Licensed ChipPAC Products which
are imported, sold, leased or otherwise disposed of by ChipPAC, not in
contravention of the sublicense herein granted to ChipPAC, Motorola's grant of a
worldwide, non-exclusive and royalty-free immunity from suit under the Motorola
Patents, covering the use, whether direct or contributory, during the term of
this Agreement of such Licensed ChipPAC Products, provided that such royalty-
free immunity for the user shall extend only under those Motorola Patents
sublicensed by Hyundai hereunder and only to the use or sale of those particular
Licensed ChipPAC Products which the user obtained from ChipPAC, Inc. or one of
its Subsidiaries; and

                                      -5-
<PAGE>

          2.1.4.  ChipPAC consents to extend the definition of Hyundai Patents
in Section 1.13 of the Motorola License Agreement to include inventions made by
employees of ChipPAC.

     2.2  Notwithstanding the provisions of Section 2.1.2 or 3.1.1 hereof, in no
                                            ----------------------
event shall the sublicense granted to ChipPAC include the right to make, use, or
sell any product (i) which is object code compatible or upward object code
compatible with or which substantially utilizes the instruction set of or which
is substantially compatible with the programmer's model of, any Microprocessor
product designed and sold by Motorola or based on such a product; or which is
substantially compatible with the register set of any Input-Output Adapter
product designed and sold by Motorola, including but not limited to the products
of 65XX, M68XX, M68XXX, M1468XX, M68HCXX, M683XX, M88XXX, DSP56XXX, or DSP96XXX
families of Microprocessors and Input-Output Adaptors, or RISC products based on
the POWER and POWER PC architectures, or (ii) which incorporate such
Microprocessor or Input-Output Adaptor products as elements of their structure;
or (iii) which is substantially the same, in layout, architecture and/or circuit
design, to any product designed and sold by Motorola.  However, ChipPAC shall
have the right, subject to all copyright and mask work rights owned or
controlled by Motorola and subject to the above limitations of this Section, to
develop and manufacture original designs of products performing substantially
the same functions as any Motorola Microprocessor, Input-Output Adaptor, or
other Circuit or Semiconductor Element products.

             SECTION 3 - RIGHTS AND OBLIGATIONS FOLLOWING CLOSING
             ----------------------------------------------------

     3.1  In accordance with the Motorola License Agreement as modified by that
certain letter agreement between Hyundai and Motorola dated July 27, 1999,
immediately following the Closing and continuing throughout the term of the
Motorola License Agreement:

          3.1.1.  ChipPAC shall retain, and Hyundai shall continue to grant to
ChipPAC, a non-exclusive, royalty-free, non-transferable sublicense throughout
the world under the Motorola Patents, with the additional right for ChipPAC to
grant sublicenses thereunder only to its Subsidiaries:

                  (a)  to make (including to make for others, whether or not of
their design), use, lease, sell, or otherwise dispose of, but not to have made,
Licensed ChipPAC Products of the same or similar type as those made, used,
leased, sold or otherwise disposed of by ChipPAC, Inc., ChipPAC Korea or ChipPAC
Shanghai in the conduct of their business prior to the Effective Time, and to
practice any process or method involved in the manufacture or use thereof, and

                  (b)  to make, use and have made Manufacturing Apparatus of the
same or similar type as that made or used by ChipPAC, Inc., ChipPAC Korea or
ChipPAC Shanghai in the conduct of their business prior to the Effective Time,
and to practice any process or method involved in the use thereof, and

                                      -6-
<PAGE>

                  (c)  to assemble for itself and for others the items listed in
Section 1.14, to the extent such items are of the same or similar type as those
------------
items assembled by ChipPAC, Inc., ChipPAC Korea or ChipPAC Shanghai in the
conduct of their business prior to the Effective Time; and

          3.1.2.  Users of Licensed ChipPAC Products shall retain, and Hyundai
shall continue to extend to users of Licensed ChipPAC Products which are
imported, sold, leased or otherwise disposed of by ChipPAC not in contravention
of the sublicense herein granted to ChipPAC, Motorola's grant of a worldwide,
non-exclusive and royalty-free immunity from suit under the Motorola Patents,
covering the use, whether direct or contributory, during the term of this
Agreement of such Licensed ChipPAC Products, provided that such royalty-free
immunity for the user shall extend only under those Motorola Patents sublicensed
by Hyundai hereunder and only to the use or sale of those particular Licensed
ChipPAC Products which the user obtained from ChipPAC, Inc. or one of its
Subsidiaries; and

          3.1.3.  ChipPAC and its sublicensed Subsidiaries release, acquit and
forever discharge Motorola for any time prior to the Closing from any and all
claims or liability for infringement or alleged infringement of any ChipPAC
Patents or Subsidiary Patents under which a license or a right was granted by
Hyundai to or for Motorola pursuant to the Motorola License Agreement; and

          3.1.4.  ChipPAC and its sublicensed Subsidiaries grant to Motorola a
non-exclusive, royalty-free, non-transferable license (without the right to
sublicense) throughout the world under the ChipPAC Patents and Subsidiary
Patents:

                  (a)  to make (including to make for others, whether or not of
their design), use, lease, sell, or otherwise dispose of, but not to have made,
Licensed Motorola Products and to practice any process or method involved in the
manufacture or use thereof, and

                  (b)  to make, use and have made Manufacturing Apparatus and to
practice any process or method involved in the use thereof, and

                  (c)  to assemble for itself and for others the items listed in
Section 1.14; and
------------

          3.1.5.  ChipPAC and its sublicensed Subsidiaries grant to the users of
Licensed Motorola Products which are imported, sold, leased or otherwise
disposed of by Motorola, not in contravention of the license granted by ChipPAC
and its sublicensed Subsidiaries herein to Motorola, a worldwide, non-exclusive
and royalty-free immunity from suit under the ChipPAC Patents and Subsidiary
Patents, covering the use, whether direct or contributory, during the term of
this Agreement of such Licensed Motorola Products, provided that such royalty-
free immunity for the user shall extend only under those ChipPAC Patents and
Subsidiary Patents licensed by

                                      -7-
<PAGE>

ChipPAC and its sublicensed Subsidiaries hereunder and only to the use or sale
of those particular Licensed Motorola Products which the user obtained from
Motorola.

     3.2  It is understood and agreed that the rights granted pursuant to
Sections 3.1.1 and 3.1.2 hereof extend only to ChipPAC and its sublicensed
------------------------
Subsidiaries and may not be assigned or transferred by ChipPAC or its
sublicensed Subsidiaries without the consent of Motorola.  It is further
understood and agreed that (i) in the event ChipPAC or any of its sublicensed
Subsidiaries are acquired by or acquire, directly or indirectly, another entity
or part thereof, the rights granted to ChipPAC or such sublicensed Subsidiary,
as applicable, shall not inure to such acquiring or acquired, as applicable,
entity and (ii) the rights granted to ChipPAC and its sublicensed Subsidiaries
pursuant to Sections 3.1.1 and 3.1.2 hereof shall extend to any industry-normal
            ------------------------
growth experienced by ChipPAC and such sublicensed Subsidiaries.

               SECTION 4 - TERM, TERMINATION, AND ASSIGNABILITY
               ------------------------------------------------

     4.1  The term of this Agreement shall be from the Effective Time until
expiration or termination of the Motorola License Agreement.

     4.2  In the event Hyundai, in its sole discretion, seeks to extend, modify,
renew or amend the rights, releases and grants of the Motorola License Agreement
prior to its expiration on December 31, 2002, Hyundai shall use commercially
reasonable efforts to obtain the right from Motorola to grant ChipPAC a
sublicense (with the right for ChipPAC to grant sublicenses to its Subsidiaries)
under such extension, modification, amendment or renewal, subject to the
following:

          4.2.1.  Upon being notified in writing that Hyundai has elected to
seek a renewal, extension, modification or amendment of the Motorola License
Agreement, ChipPAC shall confirm in writing within ten (10) business days of
such notification that ChipPAC is interested in pursuing a sublicense
thereunder.

          4.2.2.  In connection with Motorola permitting a sublicense to ChipPAC
and its Subsidiaries, ChipPAC and its Subsidiaries shall allow Hyundai to grant
Motorola a license consistent with the scope of Section 3.1 of the Motorola
                                                -----------
License Agreement under any patents of ChipPAC or its Subsidiaries issued,
owned, controlled or pending throughout the world during the term of such
extension, renewal, amendment or modification of the Motorola License Agreement.

          4.2.3.  In the event the Motorola License Agreement is extended,
renewed, amended or otherwise modified to extend all or a portion of the rights
granted therein, and Hyundai is permitted to grant ChipPAC a sublicense
thereunder, at the option of ChipPAC this Agreement may be extended, renewed,
amended or modified consistent therewith.

                                      -8-
<PAGE>

          4.2.4.  In the event Hyundai obtains the right to sublicense ChipPAC
and its Subsidiaries and such extended, renewed, amended or modified Motorola
License Agreement requires payment by Hyundai to Motorola, ChipPAC's payment
obligation under such sublicense shall be prorated in a commercially reasonable
manner as agreed between ChipPAC and Hyundai.

     4.3  Except as otherwise provided in Section 3.2 of this Agreement, the
                                          -----------
rights and privileges provided for in this Agreement may be assigned or
transferred by either party only with the prior written consent of the other
party, which consent shall not be unreasonably withheld, and with the
authorization or approval of any governmental authority as then may be required;
provided, however, that no such consent shall be required to assign or transfer
--------  -------
to a successor in ownership of all or substantially all of the assets of the
assigning or transferring party; provided, further, that such successor, before
                                 --------  -------
such assignment or transfer is effective, shall expressly assume in writing to
the other party the performance of all of the terms and conditions of the
assigning or transferring party.

                     SECTION 5 - MISCELLANEOUS PROVISIONS
                     ------------------------------------

     5.1  Each of the parties hereto represents and warrants that it has the
right to grant to or for the benefit of the other or Motorola the releases,
rights and licenses granted hereunder in Sections 2 and 3.
                                         ----------------

     5.2  Each of Hyundai and ChipPAC hereby covenant and agree not to do or
fail to do any act or thing that would cause the Motorola License Agreement to
be terminated prior to its expiration on December 31, 2002.

     5.3  Nothing contained in this Agreement shall be construed as:

          5.3.1.  restricting the right of Hyundai or Motorola or any of their
Subsidiaries to make use, sell, lease or otherwise dispose of any particular
product or products not herein licensed;

          5.3.2.  restricting the right of ChipPAC or any of its Subsidiaries to
make, use, sell, lease or otherwise dispose of any particular product or
products not herein licensed;

          5.3.3.  an admission by ChipPAC of, or a warranty or representation by
Hyundai as to, the validity and/or scope of the Motorola Patents, or a
limitation on ChipPAC to contest, in any proceeding, the validity and/or scope
thereof;

          5.3.4.  an admission by Hyundai of, or a warranty or representation by
ChipPAC as to, the validity and/or scope of the ChipPAC Patents, or a limitation
on Hyundai to contest, in any proceeding, the validity and/or scope thereof;

                                      -9-
<PAGE>

          5.3.5.  conferring any license or other right, by implication,
estoppel or otherwise, under any patent application, patent or patent right,
except as herein expressly granted under the Motorola Patents, the ChipPAC
Patents and the Subsidiary Patents;

          5.3.6.  conferring any license or right with respect to any trademark,
trade or brand name, or corporate name of either party or Motorola or any of
their respective Subsidiaries, or any other name or mark, or contraction,
abbreviation or simulation thereof;

          5.3.7.  imposing on Motorola or Hyundai any obligation to institute
any suit or action for infringement of any Motorola Patents, or to defend any
suit or action brought by a third party which challenges or concerns the
validity of any Motorola Patents which are the subject of this Agreement;

          5.3.8.  imposing upon ChipPAC any obligation to institute any suit or
action for infringement of any ChipPAC Patents or Subsidiary Patents, or to
defend any suit or action brought by a third party which challenges or concerns
the validity of any ChipPAC Patents or Subsidiary Patents which are the subject
of this Agreement;

          5.3.9.  a warranty or representation by Motorola or Hyundai that any
manufacture, use, sale, lease or other disposition of Licensed ChipPAC Products
will be free from infringement of any patent other than the Motorola Patents
which are the subject of this Agreement;

          5.3.10. a warranty or representation by ChipPAC that any manufacture,
use, sale, lease or other disposition of Licensed Motorola Products will be free
from infringement of any patent other than the ChipPAC Patents which are the
subject of this Agreement;

          5.3.11. imposing on either party any obligation to file any patent
application or to secure any patent or maintain any patent in force; or

          5.3.12. an obligation on either party to furnish any manufacturing or
technical information under this Agreement except as the same is specifically
provided for herein.

     5.4  No license under any copyrights or mask work rights of Motorola,
ChipPAC or any sublicensed ChipPAC Subsidiary are granted under this Agreement.

     5.5  No express or implied waiver by either of the parties to this
Agreement of any breach of any term, condition or obligation of this Agreement
by the other party shall be construed as a waiver of any subsequent breach of
that term, condition or obligation or of any other term, condition or obligation
of this Agreement of the same or of a different nature.

     5.6  Anything contained in this Agreement to the contrary notwithstanding,
the obligations of the parties hereto shall be subject to all laws, both present
and future, of any

                                      -10-
<PAGE>

Government having jurisdiction over either party hereto, and to orders or
regulations of any such Government, or any department, agency, or court thereof,
and acts of war, acts of public enemies, strikes, or other labor disturbances,
fires, floods, acts of God, or any causes of like or different kind beyond the
control of the parties, and the parties hereto shall be excused from any failure
to perform any obligation hereunder to the extent such failure is caused by any
such law, order, regulation, or contingency but only so long as said law, order,
regulation or contingency continues.

     5.7  The captions used in this Agreement are for convenience only, and are
not to be used in interpreting the obligations of the parties under this
Agreement.

     5.8  This Agreement is in the English language only, which language shall
be controlling in all respects, and all versions hereof in any other language
shall be for accommodation only and shall not be binding upon the parties
hereto.  All communications to be made or given pursuant to this Agreement shall
be in the English language.

     5.9  This Agreement and the performance of the parties hereunder shall be
construed in accordance with and governed by the laws of the State of Illinois.

     5.10 If any term, clause, or provision of this Agreement shall be judged to
be invalid, the validity of any other term, clause, or provision shall not be
affected, and such invalid term, clause, or provision shall be deemed deleted
from this Agreement.

     5.11 This Agreement sets forth the entire Agreement and understanding
between the parties as to the subject matter hereof and merges all prior
discussions between them, and neither of the parties shall be bound to any
conditions, definitions, warranties, understandings or representations with
respect to such subject matter other than as expressly provided herein or as
duly set forth on or subsequent to the date hereof in writing and signed by a
proper and duly authorized officer or representative of the party to be bound
thereby.

     5.12 The parties hereto shall keep this Agreement confidential and shall
not now or hereafter divulge this Agreement or any part thereof to any third
party except:

          5.12.1.  with the prior written consent of the other party; or

          5.12.2.  to any governmental body having jurisdiction to request and
to read the same; or

          5.12.3.  as otherwise may be required by law or legal processes; or

          5.12.4.  to legal counsel representing either party; or

                                      -11-
<PAGE>

           5.12.5.  in connection with either party's debt or equity financing;
or

           5.12.6.  to Motorola.

     5.13. All notices required or permitted to be given hereunder shall be in
writing and shall be valid and sufficient if dispatched by registered airmail,
postage prepaid, in any post office in the United States, Korea or the British
Virgin Islands, or sent by reputable overnight courier, addressed as follows:

          If to Hyundai:
          -------------

          Hyundai Electronics Industries Co., Ltd.
          10/th/ Floor
          Hyundai Jeonja Building
          66 Jeokseon-dong, Jongro-ku
          Seoul, Korea
          Attention: Senior Manager, Patent Department

          If to ChipPAC:
          -------------

          ChipPAC Limited
          Craigmuir Chambers
          P.O. Box 71
          Road Town
          Tortola, British Virgin Islands
          Attention: Resident Director

          with a copy to:

          ChipPAC, Inc.
          3151 Coronado Drive
          Santa Clara, California 95054
          Attention: President

          5.13.1.  The date of receipt of such a notice shall be the date for
the commencement of the running of the period provided for in such notice, or
the date at which such notice takes effect, as the case may be.

     5.14  This Agreement may be executed in counterparts, all of which together
shall constitute one and the same Agreement.

                           *     *     *     *     *

                                      -12-
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have executed this Agreement in
duplicate.

Hyundai Electronics Industries Co., Ltd        ChipPAC Limited

By: /s/ D.S. Chung                             By: /s/ Richard Parsons
    -----------------------------------            ---------------------------

Name: D.S. Chung                               Name: Richard Parsons
      ---------------------------------              -------------------------

Title: Director                                Title: Director
       --------------------------------               ------------------------

Date: August 4, 1999                           Date: August 4, 1999
      ---------------------------------              -------------------------

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