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To: TREND1 who wrote (49328)	10/18/1999 9:19:00 AM
From: DJBEINO	Respond to of 53903

That's an order!! Japan's NEC Wins $2.84 Billion Chip Order For New Nintendo Machine Monday, October 18, 1999 08:41 AM ET TOKYO -(Dow Jones)- Japan's NEC Corp. said Monday it has received an order for semiconductors valued at 300 billion yen ($2.84 billion) for Nintendo Co.'s next-generation game machine, dubbed "Dolphine." The order is for highly advanced graphics; large-scale integrated, or LSI, circuits, and for high-speed dynamic random access memory, or DRAM, chips, the leading electronic devices maker (NIPNY) said. To support the order from Nintendo and NEC's own plan to develop 0.13-micron embedded DRAM process technology, the company will build a new semiconductor plant at its NEC Kyushu facility in southern Japan. Construction will begin in November, and operations are expected to begin from next August, NEC said. NEC will spend 80 billion yen on the new plant. The company expects returns equivalent to its capital outlay within four to five years, according to NEC managing director. NEC will book 50 billion yen of the planned cost in the fiscal year ending March 31, 2000, and the remainder in the next fiscal year, NEC director Keiichi Shimakura said. The 50 billion yen for the new plant is included in a previously announced 150 billion yen the company said it would spend for capital investments this fiscal year, the official said. NEC also will spend 15 billion yen to build a new line at its existing LSI plant in Tsuruoka City in Japan's Yamagata Prefecture, which will adopt 0.13-micron embedded DRAM process technology, it said. Through these moves, the company aims to expand its LSI production to one trillion yen in sales by the end of the March 2004 fiscal year from an estimated 650 billion yen this fiscal year, NEC said. Nintendo won't invest in the Kyushu plant despite the plant's large focus on business with the game machine maker, since NEC plans to keep it open to other orders, Sugihara said. "How much of the plant's output will go to Nintendo depends on how successful its new game consoles are ... we will maintain a multiproduction line at the new plant, which will shift its focus to other customers if Nintendo's new product sees weak results," he said. Chip production for game machines at NEC contributes less than 10% to the company's annual sales of semiconductors, and this percentage is expected to grow, especially with the latest contract with Nintendo, Sugihara said.