To: TREND1 who wrote (26547 ) 1/14/1998 8:55:00 PM From: DJBEINO Read Replies (1) | Respond to of 53903
NEC Delaying Plans To Make Chips From 300mm Wafers Dow Jones Online News, Wednesday, January 14, 1998 at 14:44 TOKYO -(Dow Jones)- NEC Corp. is considering postponing for at least a year its plans to fabricate microchips from 300 millimeter silicon wafers, company sources said. The company cited a sluggish semiconductor market and high prices for chip-making equipment for such lines, the Nihon Keizai Shimbun reported in its Thursday morning edition. NEC (NIPNY) had planned to ramp up lines for 300mm wafers at a plant in Kanagawa prefecture by the end of fiscal 1998, but has put that off until after 1999. Installation of 300mm wafers processing at a plant in Kumamoto prefecture, planned for 1999, might also be postponed for about a year, the sources added. Prices for 64-megabyte dynamic random access memory, or DRAM, chips have fallen 40% in the last two months, prompting producers to slash investment in plant and equipment. Fabricating chips from 300mm wafers is viewed as crucial to low-cost production of high-density chips such as 1-gigabit DRAMs. Etching chips on 300mm wafers is calculated to be more than 30% cheaper by packing 2.5 times as many chips on a wafer as on the now-standard 200mm wafers. Last month, Hitachi Ltd. said it will postpone opening new facilities at its Naka plant in Ibaraki prefecture for a year. The 150-billion-yen ($1.14 billion) line was scheduled to start commercial fabrication of 64-megabit DRAMs from 300mm wafers in fiscal 1999. Hitachi is also considering reducing capacity at the plant. Toshiba Corp. plans to hold off on building a 130 billion yen plant in Iwate Prefecture, and Mitsubishi Electric Corp. and Fujitsu Ltd. may cut capital spending in the next fiscal year by 10-20%, or 10-30 billion yen. The German federal government and the state of Saxony announce plans this week to spend as much as 370 million marks ($202.9 million) in public funds on development of a "next generation" chip industry based on 300mm wafer technology. Copyright (c) 1998 Dow Jones & Company, Inc.