Sharp to produce semiconductor

JAKARTA (JP): Sharp Corporation, a major electronics manufacturer from Japan, will establish a semiconductor factory in Karawang, West Java.

"The agreement to establish PT Sharp Semiconductor, as a wholly foreign-owned company in Indonesia was signed last Thursday, but the construction of the plant itself will start next month," General Manager of the company, Masao Hayakawa, announced yesterday.

The first phase of the construction with an investment of US$ 21.9 million is expected to be completed in October next year, Hayakawa said.

"The company will initially produce 20 million units of semiconductor, including integrated circuits (ICs) and opto- device components per month, but the capacity will be expanded to 35 million units after three years," he said.

Hayakawa added that the whole project, which will be implemented in three stages with a total investment of $71.6 million, will be completed in 1998.

"For the first few years, we will export 100 percent of our production, but in the future, 25 percent of the output can be used to fulfill the domestic demand," said President of PT Sharp Yasonta Indonesia Toshihiro Noguchi.

The products will be exported to countries around the world, particularly in Southeast Asia, he added.

Noguchi said that raw materials for the semiconductor will be imported wholly from Japan. (31)