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