News Releases Corporate Profiles

June 29, 2000
Hitachi Establishes New Semiconductor Manufacturing Equipment Group
– As the strategic hub of the Hitachi Group's semiconductor manufacturing equipment operations, the new business group will provide focus for Group affiliates and expand business content. –


Tokyo, Japan, June 29, 2000 Hitachi, Ltd. (TSE : 6501) today announced to establish a new business group " Semiconductor Manufacturing Equipment (tentative) " which will become Hitachi's 16th business group. Scheduled for establishment on October 1, this new group expands and strengthens its semiconductor manufacturing equipment operations.

The new group will serve as a strategic hub of the Hitachi Group's semiconductor manufacturing equipment operations, and will work closely with inter-Group companies to unify research and development operations, and provide focus for strategic issues.

The content of the semiconductor manufacturing equipment market is currently expanding rapidly, bolstered by the robustness of the semiconductor devices industry, which is underpinned by growth in mobile phones and PCs.

Furthermore, semiconductor devices play a crucial role as the core technology for ushering in the advanced information society, and are becoming increasing more compact and versatile. Hence, in manufacturing equipment as well, demand is swelling for advanced complex technologies, comprehensive manufacturing and service solutions, and cutting edge processes made possible through the combination of multiple types of manufacturing equipment.

Up to now, the Hitachi Group has continued to provide customer satisfying products and total semiconductor manufacturing systems. Hitachi gathers cutting edge technologies from its own Power & Industrial Systems and Instruments groups, and from such affiliated firms as Kokusai Electric Co., Ltd. and Hitachi Electronics Engineering Co., Ltd. and applies them to the development of ultra-fine technologies, the ramp up of production lines, and the yield enhancement.

However, competition in the semiconductor manufacturing equipment market has intensified considerably, and more dynamic measures are required to achieve further business expansion. In such operations as next generation product development and the establishment of CS (Customer Support) centers and maintenance / service facilities —operations that have been conducted by each individual affiliate so far— Hitachi must now share Group resources and develop mutually beneficial business.

Hence, the Company has resolved to separate the Semiconductor Manufacturing Equipment Division from its Power and Industrial Systems, and establish it as Semiconductor Manufacturing Equipment (tentative), the company's 16th business group.

The new group will not only compile data on trends in the semiconductor device and manufacturing equipment markets and in sales of Instruments groups and other Hitachi Group affiliates, but also serve as the strategic hub of semiconductor manufacturing equipment operations for the Hitachi Group. Thus, it will help achieve consensus on Groupwide R&D and the functions of maintenance and service facilities, provide focus for strategic issues, and create a common liaison point for external relations.

As the core of the Hitachi Group's semiconductor manufacturing equipment operations, the new group will generate a valuable synergy and strive for further business strength and expansion.

<Semiconductor Manufacturing Equipment (tentative) Profile>
Established: October 1, 2000.    
President & Chief Executive Officer: As yet undecided
Number of employees: 350 (as of October 1, 2000)
Net sales: 1999 (recorded result)
2002 (projected)
¥26,500 million
¥52,000 million
Amount of semiconductor manufacturing equipment sales received by the Hitachi Group:
  1999 (recorded result)
2002 (projected)
¥97,400 million
¥167,000 million


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WRITTEN BY Corporate Communications Division
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