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
Company Name: To be decided
Head Office: 751 Horiguchi, Hitachinaka-city, Ibaraki prefecture, Japan
(Currently, N3 building of Hitachi's LSI Manufacturing Operation)
Establishment: End of February 2000
Equity Position: Hitachi 60%, UMC 40%
Representative: To be assigned by Hitachi
Business: Manufacture and sales of semiconductors
Production: Pilot production starts in January 2001
Mass production starts in April 2001
Capacity: 7,000 wafers per month by 300mm in the 2nd half of 2001
Initial Investment: Approx. 70 billion yen for 7,000-wafer capacity
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
About United Microelectronics Corporation
UMC is a world leading semiconductor foundry with eight wafer fabs (including six
8"fabs) located in Taiwan's Hsinchu Science Park. UMC also operates the only
dedicated foundry in Japan, Nippon Foundry Inc. (NFI). UMC is a leader in foundry
technology and expects capacity to reach 2.4 million wafers per year in 2000 with over
50% for 0.25-micron and beyond technologies. UMC is currently in volume production
of 0.18-um technology and will offer copper-interconnect and 0.15-micron logic
technology to its foundry customers in the first quarter of 2000. The company has
started construction on a 300mm facility in Taiwan that is expected to enter production
by mid-year 2001 with a design capacity of 30,000 wafers per month. UMC has
marketing and customer support offices located in the United States, Japan, and the
Netherlands. UMC can be found on the web at http://www.umc.com.tw.
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