Infineon and Nanya finalise DRAM deal

Infineon Technologies and Nanya Technology Corporation have signed contracts finalising the two company’s strategic co-operation on standard memory chips (DRAMs).

Infineon Technologies, Munich and Nanya Technology Corporation (NTC), Taoyuen, Taiwan have signed final contracts concerning strategic co-operation on standard memory chips (DRAMs).

According to a joint statement, the co-operation will help each partner expand its position in the DRAM market while sharing development costs. The agreement provides for the joint development of advanced 0.09-micron and 0.07-micron production technologies for 300mm wafers.

Under the terms of the agreement the companies have also set up a 50:50 joint venture for the production of DRAM chips and will build a new joint 300mm facility in Taiwan. This facility will employ the production technology developed jointly by the companies. Maximum production capacity will approach 50,000 wafer starts a month once the facility is fully operational. Initial production of the first 300mm wafers in the new facility is expected in late 2003.

The new 300mm semiconductor facility will be constructed in two stages aligned with the growth and development of the world semiconductor market.

The first stage, which is scheduled for completion in the second half of 2004, will give the facility an initial monthly capacity of around 20,000 wafer starts. Completion of the second stage, currently scheduled for mid-2006, will increase capacity to around 50,000 wafer starts a month, making the new semiconductor facility one of the largest in the world.

The total investment planned in the next three years amounts to around 2.2 billion Euros.

Infineon and Nanya will each invest 550 million Euros in their memory chip production project until 2005, the majority of which will be used to ramp up production in 2004 and 2005.

When operating at maximum capacity, the facility will create up to 1,300 new jobs in Taiwan. The joint venture will be headquartered in Taoyuen, close to Nanya’s existing production site. Subject to approval by the antitrust authorities, the joint venture will commence business operations on December 2, 2002.