Hitachi-Mitsubishi to invest $1.7b

Hitachi-Mitsubishi to invest $1.7b

TOKYO: A semiconductor giant jointly owned by Hitachi and Mitsubishi Electric plans to invest about US$1.7 billion to produce next-generation microchips with other Japanese firms, an official said on Tuesday.

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

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

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 billion to 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. -AFP