To: Proud_Infidel who wrote (33404 ) 12/1/1999 4:42:00 PM From: Proud_Infidel Respond to of 70976
NEC, Hitachi Disclose Details of New DRAM Joint Venture December 1, 1999 (TOKYO) -- NEC Corp. and Hitachi Ltd. disclosed details of a joint venture to develop and design next-generation dynamic random access memory chips and to be set up at year end. The new company, to be called NEC-Hitachi Memory Inc., will be based on a comprehensive tie-up agreement for the DRAM business concluded on June 23 between the two chipmakers. The equally-owned joint venture, to be initially capitalized at 500 million yen, will be headquartered in Tokyo, while development and test production of the DRAMs will be based at NEC's facility in Sagamihara, Kanagawa Prefecture. The joint venture plans to increase the capital to 2 billion yen by the end of March 2000. (104.12 yen = US$1) Employees will be sent equally by NEC and Hitachi. Initially, the company will have about 200 employees, but plans to increase the number to some 600 to 700 by April 2001.NEC-Hitachi Memory will develop general-purpose DRAMs which will use 0.13-micron manufacturing technology as a design rule. The joint venture will aim to develop a product within one year by mobilizing engineers both from NEC and Hitachi. Such development usually takes about 18 months. The two companies will also transfer the sales function of the general-purpose DRAMs to the new company. They will integrate their sales businesses and transfer it to NEC-Hitachi Memory. The new company will sell existing DRAM chips developed and sold by NEC and Hitachi under a new, unified brand in domestic and foreign markets, in addition to marketing its proprietary products. DRAM production will take place at existing NEC and Hitachi facilities. NEC-Hitachi Memory will entrust production to its parent companies. The joint venture plans to use mainly NEC Hiroshima and Hitachi Nippon Steel Semiconductor Singapore plants initially in 2001. (BizTech News Dept.)