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To: DJBEINO who wrote (4761)	3/16/1999 12:24:00 AM
From: DJBEINO	Respond to of 9582

UMC Group and Kawasaki LSI Establish Alliance for 0.18um Production Capacity SUNNYVALE, Calif.--(BUSINESS WIRE)--March 15, 1999--Kawasaki LSI, Inc., based in Japan, and UMC Group today announced a strategic alliance for 0.18um process technology developments, including implementations of copper and low-k dielectric layers. As part of the agreement, UMC Group will provide Kawasaki with foundry services to support Kawasaki's growing ASIC and standard products business. Kawasaki has agreed to contract to UMC Group all ASIC manufacturing that exceeds Kawasaki's current capacity. Kawasaki started its ASIC business with 0.25um process technology in early 1999 and proposed to establish a second fab for the development of a 0.18um processes in July 1999. However, Kawasaki cancelled this later project after forming this strategic alliance, determining that UMC Group will provide a more economical and competitive alternative. Kawasaki will begin re-targeting its extensive ASIC library to UMC Group's 0.18um process in Q299 with the assistance of UMC Group. Kawasaki anticipates volume 0.18um ASIC production before the end of Q499. This alliance allows Kawasaki to begin offering 0.18um ASICs more than one and one-half years before originally planned, enabling the company to remain competitive in ASICs in terms of deep sub-micron process technology. Kawasaki is specifically targeting its ASIC and standard products in the network, telecommunications and mobile computing areas. To show support for the alliance, Kawasaki will make a capital investment into Nippon Foundry Inc.(NFI), a member of the UMC Group in March 1999 when NFI plans to increase its paid-in capital. Following this, Kawasaki will also make a capital investment in a UMC Group's joint venture fab in Taiwan by mid-1999. This alliance with UMC Group is not limited to its 0.18um process, but extends to its 0.25um process, including embedded DRAM and other process technologies of the UMC Group. Kawasaki anticipates that its ASIC and standard product expansion will greatly contribute to the UMC Group's pure foundry business. Kawasaki LSI U.S.A., Inc. is the north American affiliate of Kawasaki Steel Corporation in Japan. The company provides the product development, marketing, sales and technical support for customers in the Americas in connectivity and data communications applications. UMC Group is a world leading semiconductor foundry group consisting of United Microelectronics Corp. (UMC), United Semiconductor Corp. (USC), United Integrated Circuits Corp. (UICC), United Silicon, Inc. (USIC), UTEK Semiconductor Corp. (UTEK), and the first dedicated foundry in Japan, Nippon Foundry Inc.(NFI). The group leads the dedicated foundry industry in value-added design support with its Gold IPTM program. In 1998, UMC Group's L250 (0.25um) and L220 (0.22um) process technologies set the foundry industry benchmark for production volumes, capacity and yields in very deep sub-micron technology. In 1999, UMC Group will have production-ready 0.18um (L180) and copper-interconnect technology. The UMC Group Silicon Shuttle(SM) test-chip program enables library vendors, IP vendors and foundry customers to verify their designs in silicon at low or no cost. UMC Group companies are headquartered in Taiwan with marketing and customer support offices located in the United States, Japan and The Netherlands. UMC Group (U.S.A.) offices are located at 788 Palomar Avenue, Sunnyvale, CA 94086, tel. (408)733-8881, fax (408)733-8090. The company's website address is www.umcgroup.com. biz.yahoo.com