Infineon and UEC establish fibre optics venture

Infineon Technologies has signed an agreement with United Epitaxy Company, Taiwan, to set up a joint venture for the manufacturing and development of fibre optics components.

Infineon Technologies has signed an agreement with United Epitaxy Company (UEC), Taiwan, to set up a joint venture for the manufacture and development of fibre optics components. The joint venture will be based within the existing facility of UEC at Hsinchu Science-based Industrial Park in Taiwan and will be established in October 2003.

Subject to approval by the German anti-trust authority, Infineon will hold 56 percent of the shares of the joint venture and UEC the remaining 44 percent. The total investment over the next five years including business start-up, manufacturing site, equipment, and other infrastructures, will amount to approximately $12 million. When operating at full capacity of up to 100 wafer starts per week the joint venture will employ around 120 people.

According to a joint statement, the new company will integrate fibre optics technology of the two parent companies to achieve manufacturing and development synergies.

Under the terms of the agreement, both companies will license their respective technology to the joint venture. In return, the new company will manufacture optochips for Infineon and UEC. Both partners will assemble the optochips into high-end micro systems and components for the market of high-speed data transmission products based on fibre optic technology.

‘Taiwan is always an engine of the global IT industry. This JV between Infineon and UEC is our further recognition of Taiwan’s role in global IT industry,’ said Mr. Loh Kin Wah, President of Infineon Technologies Asia Pacific Pte Ltd. ‘This joint venture will ensure sufficient supply and develop the most competitive fibre optics products for Infineon and UEC.’

The joint venture is scheduled to be established in October 2003; clean room and major equipment installation is expected to be completed within the fourth quarter of 2003 with trial production slated for the first quarter of 2004 and mass production for the fourth quarter of 2004.