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For Immediate Release
Hitachi and UMC to Establish
300mm Wafer Semiconductor Joint Venture
Tokyo
and Taipei, December 27, 1999 -- Hitachi, Ltd. (Hitachi) (NYSE:
HIT) and United Microelectronics Corporation (UMC) today announced
that they have come to an agreement regarding the principal terms
of a joint venture company to manufacture 300mm wafers with leading-edge
process technologies of 0.18-micron and beyond. The new company
will be based in the N3 building of Hitachi's LSI Manufacturing
Operation in Hitachinaka-city, Ibaraki prefecture, Japan. The
site is expected to become a strategic manufacturing facility
for both Hitachi and UMC, combining Hitachi's advanced process
and manufacturing technology with UMC's advanced technology and
world-class silicon foundry expertise. Half of the capacity of
the joint venture will be reserved for Hitachi's products, with
the other half reserved for products supplied to UMC's foundry
customers. The joint venture will be established by the end of
February 2000 and start manufacturing operations from 2001.
"The
semiconductor market is expected to continue growing, driven by
rapidly increasing demand for electronic devices, such as PCs,
mobile communications and digital consumer products. Through the
joint venture, Hitachi and UMC will better meet the growing demand
for advanced ICs, including next-generation system-on-chip designs.
Hitachi and UMC expect that the joint investment will accelerate
the ramping-up of production and maximize returns on investment
for the new company," said Hitachi's Tadashi Ishibashi, President
& Chief Executive Officer of Semiconductor & Integrated
Circuits.
"This
joint venture will result in one of the world's first 300mm wafer
plants in mass production. It is being established in response
to strong customer demand for advanced technologies and increased
capacity. With the wealth of technological and manufacturing expertise
that UMC and Hitachi bring to this venture, we are confident of
its success. Our foundry customers will welcome this partnership,"
said Robert Tsao, Chairman of UMC.
Hitachi
will contribute its 0.18-micron and beyond process technology,
as well as its experience in the development of 300mm manufacturing
systems. UMC will also contribute its 0.18-micron and beyond technology
to the company, as well as provide a wealth of know-how in silicon
foundry operations. The synergy created by the combination of
the two companies' expertise will ensure that the joint venture
leads the industry in the mass production of 300mm wafers, and
also provides world-leading cost-performance and quick turn around
times (QTAT).
Outline
of Joint Venture
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Company Name:
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To be decided
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Head Office:
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751 Horiguchi, Hitachinaka-city, Ibaraki prefecture, Japan
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(Currently, N3 building of Hitachi's LSI Manufacturing Operation)
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Establishment:
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End of February 2000
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Equity Position:
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Hitachi 60%, UMC 40%
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Representative:
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To
be assigned by Hitachi
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Business:
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Manufacture and sales of semiconductors
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Production:
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Pilot production starts in January 2001
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Mass production starts in April 2001
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Capacity:
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7,000 wafers per month by 300mm in the 2nd half of 2001
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Initial Investment:
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Approx. 70 billion yen for 7,000-wafer capacity
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About Hitachi, Ltd.
Hitachi, Ltd., headquartered in Tokyo, Japan, is one of the
world's leading global electronics companies, with fiscal 1998
(ended March 31, 1999) consolidated sales of 7,977 billion yen
($65.9 billion*). The company manufactures and markets a wide
range of products, including computers, semiconductors, consumer
products and power and industrial equipment. For more information
on Hitachi, Ltd., please visit Hitachi's web site at http://www.hitachi.co.jp.
*At
an exchange rate of 121 yen to the dollar
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