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UMC
Group And Kawasaki LSI Establish Alliance for 0.18 Micron Production
Capacity
SUNNYVALE,
Calif.—March 15, 1999—Kawasaki LSI, based in Japan, and UMC Group
today announced a strategic alliance for 0.18m process technology
developments, including implementations of copper and low-k dielectric
layers.
As part of
the agreement, UMC Group will provide Kawasaki with foundry services
to support Kawasaki's growing ASIC and standard product business.
Kawasaki has agreed to contract to UMC Group all ASIC manufacturing
that exceeds Kawasaki's current capacity.
Kawasaki started
its ASIC business with 0.25m process technology in early 1999,
and proposed to establish a second fab for the development of
0.18m processes in July 1999. However, Kawasaki cancelled this
later project after forming this strategic alliance—it determined
UMC Group will provide a more economical and competitive alternative.
Kawasaki will
begin re-targeting its extensive ASIC library to UMC Group's 0.18m
rules in Q2 '99 with the assistance of UMC Group. Kawasaki anticipates
volume 0.18m ASIC production before the end of Q4 '99. This alliance
allows Kawasaki to begin offering 0.18m ASICs more than one and
one half (1.5) years before originally planned, enabling the company
to remain competitive in ASICs in terms of deep sub-micron process
technology. Kawasaki is specifically targeting its ASIC business
in the network, telecommunications, and mobile computing areas.
To show support
for the alliance, Kawasaki will make a capital investment into
Nippon Foundry Inc. (NFI), UMC Group's newest fab, in March 1999.
Following this investment, Kawasaki will also make a capital investment
in a UMC Group joint venture fab in Taiwan by mid-1999.
This alliance
with UMC Group is not limited to 0.18m process business but extends
to its 0.25m process, 0.25m embedded DRAM process and to all other
processes. UMC Group also anticipates that Kawasaki's ASIC business
expansion will contribute to the UMC Group's pure-play foundry
business.
About Kawasaki
Kawasaki LSI
U.S.A., Inc. is a subsidiary of the LSI Division of Kawasaki Steel
Corporation, a manufacturer and marketer or ASICs, USB controllers,
CAMs and other chips for connectivity and communications applications.
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