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

 
 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

Hitachi, Ltd. Yukiaki Ina 81-(0)3-3258-2055 yina@cm.head.hitachi.co.jp

Alex Hinnawi United Microelectronics Corporation 886-2-2700-6999 ext.6958 alex_hinnawi@umc.com.tw