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|GLOBAL MARKET OVERSUPPLY AND SEVERE FALLING PRICE|
|FORCES HITACHI TO REDUCE DRAM PRODUCTION IN SINGAPORE|
29 November, 2001-- Hitachi Nippon Steel Semiconductor Singapore Pte.
Ltd., a joint venture company which manufactures 8 64 megabit
and 256 megabit DRAM (Dynamic Random Access Memory) has been affected
like other DRAM makers by global oversupply and severe falling price
of DRAM chips as well as the global semiconductor industry downturn.
The Company has been operating at about 60% capacity and DRAM production
will be reduced further to match the demand. The future plan for the
company is to focus on production know-how, product process and quality
improvements of new products. In addition to providing DRAMs to Elpida
Memory, Inc., a joint venture of Hitachi and NEC, the company will start
trial production of non-commodity products such as SRAM, flash memories,
F-ZTAT* microcontrollers, SuperH* microprocessors. Volume production
is scheduled to start in 1st half of fiscal 2002.
As a result of the reduction in production quantity, the Company has retrenched 430 employees, comprising engineering, production and administrative staff. This retrenchment exercise reduces the Company's total headcount from 980 to 550 employees.
The Company is also working very closely with relevant government agencies to find alternative jobs for affected employees.
About Hitachi Nippon Steel Semiconductor Singapore Pte. Ltd.
* F-ZTAT and SuperH are registered trade mark of Hitachi, Ltd.
|WRITTEN BY Corporate Communications Division