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Hitachi-Mitsubishi joint venture aims for 1.7 bln dlr microchip investment

Tuesday, 09-Sep-2003 9:33AM PDT
Story from AFP
Copyright 2003 by Agence France-Presse (via ClariNet)

TOKYO, Sept 9 (AFP) - A semiconductor giant jointly owned by Hitachi and Mitsubishi Electric plans to invest about 1.7 billion dollars to produce next-generation microchips with other Japanese firms, an official said Tuesday.

Renesas Technology said it was negotiating with the two over 200 billion yen (1.7 billion dollar) spending on its state-of-the-art factory in Hitachinaka, 100 kilometres (62 miles) northeast of Tokyo.

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The all-Japan project aims to make 90-nanometre chips using 300-millimetre (12-inch) wafers. One nanometre is one billionth of a metre.

The investment plan was unveiled at a business briefing by Renesas president Satoru Ito.

The investment will likely reach 25 billion yen by 2005, with another 170-180 billion yen spent when production of the new chips goes into full swing in 2006, the company said.

Hitachi and Mitsubishi set up Renesas Technology in April by merging their semiconductor operations. Hitachi owns 55 percent of the new firm, with Mitsubishi holding the rest.