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Hitachi & Taiwan's UMC To Team Up
TOKYO, Dec 27 (AFP) - Japan's Hitachi Ltd. and Taiwan's United Microelectronics Corp. announced on Monday they would invest $686 million in jointly producing 12-inch (300-millimeter) microchip wafers. The joint venture will build production lines at Hitachi's existing Hitachinaka plant in eastern Japan to make the microchip wafers at a more competitive price, the two companies said in a joint statement. Hitachi will take a 60 percent stake in the venture, to be formed in late February, with the balance held by UMC, Taiwan's second-largest microchip maker. Hitachi will take three of five seats on the board of directors and select the president for the joint venture, UMC Chairman Robert Tsao said. No figure was given for the new venture's total capital. Test production will begin in January 2001 with commercial output scheduled for April that year, targeting a volume of 7,000 units per month by the second half, the statement said. "Fifty percent of the output is slated for Hitachi's internal use while the remainder is for UMC foundry service," Tsao said, referring to tailor-made manufacturing offered to clients. Tadashi Ishibashi, head of Hitachi's semiconductor and integrated circuit (IC) division, said the new firm would make system large-circuit integration chips and ICs for computers and digital consumer electronics. Responding to strong demand, UMC last month began construction of its first 12-inch wafer fabrication plant in Taiwan's southern Tainan Science-based Industrial Park. The $3 billion investment is to begin production at the end of 2001 with a monthly capacity of 20,000 wafers. "Though prices of materials for the 12-inch wafers are still high, costs to mass produce chips will be some 25 percent lower with the 12-inch technology," UMC co-chief executive John Hsuan told the news conference. "By cooperating with Hitachi, we can employ the world's most advanced technology in this particular segment and benefits from this should surpass those of lower production costs in Taiwan with tax incentives," he added.
UMC now has seven fabrication plants in operation making 8-inch wafers, and its combined yearly output is expected to total $2.4 million. The joint venture is expected to begin commercial production half a year ahead of the key competitors
Newswires |
