Humpuss joins with Japanese giants
JAKARTA (JP): The NEC Corporation and The Sumitomo Corporation of Japan signed an agreement with PT Humpuss Elektronika here yesterday to establish a semiconductor assembly plant in Bekasi, West Java, with an investment of US$60 million.
"The plant, which will be operated by a joint venture company, PT NEC Humpuss Semiconductors Indonesia, will have a monthly output of 15 million linear integrated circuits (ICs) and 100 million signal transistors," said the senior vice president of NEC Corporation, Yuichi Haneta, at the signing ceremony at the Mercantile Club here.
ICs and signal transistors are used for the manufacture of televisions, video cassette recorders, personal computers and other home appliances.
The investment capital of the new company is set at $15.4 million, of which 65 percent will be provided by NEC, 25 percent by Humpuss Elektronika and 10 percent by Sumitomo.
NEC Humpuss Semiconductors will invest $45 million for the construction of the factory to be built on a 100,000-square-meter area at the East Jakarta Industrial Park.
Chairman of the Humpuss Group Hutomo (Tommy) Mandala Putra told the press that the arrangement of the joint venture was initiated three years ago.
He said Humpuss and NEC had earlier set up a joint venture company to produce switchings, downstream products of ICs, near the industrial park.
The president of Humpuss Elektronika, Agus P. Soeroso, said the long negotiations on the establishment of NEC Humpuss Semiconductors were aimed to ensure the marketing of its products. "We are now convinced that all the output of the joint venture company will be bought by NEC's worldwide network," Soeroso said.
NEC groups 211 associated companies in Japan and overseas.
Haneta said surging demand for personal computers and all types of multimedia related products led the semiconductor market to grow by 30 percent in 1994. He estimated that in 1995 the demand will increase by 40 percent.
NEC Humpuss Semiconductors will be the third semiconductor company in the country after PT Astra Microtronics Technology and the Sharp Corporation.
Astra Microtronics Technology, operating in Batam, Riau, is a joint venture established in 1990 by PT Astra Graphia and two Singaporean firms.
A public relation officer of PT Astra International told the Post yesterday that Astra Microtronics Technology last year produced 236 million ICs and exported them to earn some $42 million.
Sharp Corporation operates its plant in Karawang, West Java. The company announced early last month that it would initially produce 20 million semiconductors, including ICs and opto-device components per month next year.
All the materials and components for the production of semiconductors by NEC Humpuss Semiconductors Indonesia, Astra Microtronics Technologyy and Sharp are imported from Japan. (kod)