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UMC Announces Plan
to Establish the World's Most Advanced 300-mm Semiconductor
Foundry in Singapore
US$3.6 Billion Dollar
Investment is the Largest in the History of Singapore Semiconductor
Industry
Singapore, December 15, 2000-
Taiwan's United
Microelectronics Corporation (NYSE: UMC) today announced plans
to establish the world's most advanced 300-mm wafer foundry
company in Singapore's Pasir Ris Wafer Fab Park. Infineon Technologies
AG signed a memorandum of understanding, planning to take a
minority stake in this company. The company will operate as
a subsidiary of UMC with a planned investment for the project
of US$3.6 billion. In a press conference hosted by Bob Tsao,
Chairman of UMC Group, and Loh Kin Wah, President of Infineon
Technologies Asia Pacific, the company announced the details
of the plan to establish the independent wafer foundry. Philip
Yeo, Chairman of Singapore's Economic Development Board, the
country's lead government agency for economic development, was
also present.
The 300-mm fab will be built in two phases, with
a total planned capacity of 40,000 wafers per month. The company
will focus on System-on-Chip (SOC) products utilizing advanced
Worldlogic™ 0.13-um and 0.10-um copper/low k process
technologies jointly developed by UMC, Infineon and IBM. Groundbreaking
for the fab is scheduled for Q1 2001 with equipment move-in
for the first phase (Module A) scheduled for Q3 2002.
"UMC is very excited about expanding our operations
into Singapore. The local government has shown tremendous
vision in its commitment to attracting world leading high
technology companies, and we believe that Singapore provides
a viable location for wafer foundry services. Following the
success of NFI, our joint venture foundry in Japan, the establishment
of this company will further diversify our manufacturing operations,
enhancing our ability to serve our rapidly growing customer
base," said Chairman John Hsuan of UMC.
UMC and Infineon are both pioneers in the implementation
of 300-mm wafer production. Infineon was the first company
to ship products from a 300-mm facility, and UMC's joint venture
with Hitachi, Trecenti Technologies, was the first pure-play
foundry to achieve working silicon for 300-mm wafers, and
operates the world's first 300-mm production fab to manufacture
functional ICs.
"Our successful development
partnership with UMC is being expanded into a manufacturing
alliance to produce advanced wireline and wireless communications
ICs using 300-mm technology. This means that this strategic
Infineon business will benefit from the significant cost advantages
of 300-mm manufacturing. Teaming up with a world-class foundry
like UMC will also allow for more flexible capacity utilization,"
commented Dr. Andreas von Zitzewitz, Chief Operating Officer
of Infineon Technologies
"This is an important milestone in Infineon's 30-year history
in Singapore. This facility will complement our full-fledged
sales, marketing, production, logistics, design and research
activities in the Asia Pacific region. We're committed to Singapore,
and are delighted to be playing a role in the development of
Singapore's flourishing semiconductor industry," said Loh Kin
Wah, President, Infineon Technologies Asia Pacific Pte Ltd.
The decision to locate the joint venture in Singapore
demonstrates the growing importance of the country as a center
for high value-added manufacturing. Singapore is home to numerous
advanced wafer fabs and test and assembly facilities. This
is the first announcement for a state-of-the-art 300-mm fab
on the island and represents the largest investment in the
history of its semiconductor industry.
"This joint venture is a very strategic project
which will enhance Singapore's semiconductor industry. In
line with EDB's cluster development program, we have several
manpower programs in place to meet the industry's demand for
skilled manpower. These programs, which tap on the potential
talent pool from the universities, will be augmented by the
use of foreign talent to help seize the new opportunities
for growth in the industry, " said Philip Yeo, Chairman of
Singapore's EDB.
About Infineon
Infineon Technologies
AG, Munich, Germany, offers semiconductor and system solutions
for applications in the wired and wireless communications
markets, for security systems and smartcards, for the automotive
and industrial sectors, as well as memory products. With a
global presence, Infineon operates in the US from San Jose,
CA, in the Asia-Pacific region from Singapore and in Japan
from Tokyo. In the fiscal year 2000 (ending September), the
company achieved sales of Euro 7.28 billion with about 29,000
employees worldwide. Infineon is listed on the DAX index of
the Frankfurt Stock Exchange and on the New York Stock Exchange
(ticker symbol: IFX). Further information is available at
www.infineon.com
Safe Harbor Statement
Except for statements
in respect of historical matters, the statements in this release
are "forward-looking statements" within the meaning
of Section 27A of the Securities and Exchange Act of 1933
and Section 21E of the U.S. Securities Act of 1934.
Such forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the
actual performance, financial condition or results of operations
of UMC and Infineon Technologies to be materially different
from any future such matters implied by the statements. Investors
are cautioned that actual events and results could differ
materially from these statements as a result of a variety
of factors, including conditions in the overall semiconductor
market and economy; acceptance and demand for products, and
technological and development risks. The risks, uncertainties
and factors include, among others, those stated in the section
entitled "Risk Factors" in our Registration Statement on Form
F-1 filed with the U.S. Securities and Exchange Commission
on September 15, 2000.
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