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NEC Electronics and NEC Yamagata to Construct 300-Milimeter Wafer Production Line



KAWASAKI, Japan, November 6, 2003 -
NEC Electronics Corporation and its wholly owned subsidiary NEC Yamagata, Ltd. today announced plans to jointly construct a production line using 300mm silicon wafers within the grounds of NEC Yamagata's manufacturing compound.

The new line will be built on the first floor of NEC Yamagata's wafer fabrication plant, which had been set aside for future expansion of its current production using 200mm silicon wafers. Plans call for the installation of a class 1 clean room and production equipment onsite compatible with 300mm wafers. Upon completion, the new fabrication line will have a monthly processing capacity of approximately 4,000 wafers, roughly equivalent to processing nearly ten thousand 200mm wafers per month.

Around 60 billion yen in capital expenditures have been earmarked for construction of the new manufacturing facility. State-of-the-art 90-nanometer process wafers will be produced in the new fab line, in addition to 130-nanometer process wafers, for which demand is rapidly increasing. Construction of the clean room is slated to commence by the end of 2003, followed by installation of production equipment, trial operation, prototyping and evaluation. Plans call for the start of volume production by the end of 2004.

Mobile phones and digital home electronics, servers and telecommunications are major areas of focus for NEC Electronics worldwide. In the mobile phone and digital home electronics fields, demand has surged for semiconductors produced through highly advanced process geometries, with low power consumption for long-life battery operation. In order to meet increased demand, NEC Electronics has decided to invest in a new manufacturing line using 300mm wafers that enables smooth production ramp of deep submicron processes. NEC Yamagata was a natural choice for construction of the new fab line, since the company has rich experience in volume production of cutting-edge process technologies including 130nm and also maintains available floor space for future expansion of its existing production.

"NEC Yamagata had originally planned to install additional equipment on the first floor of its head office facility to expand production capacity using 200mm wafers. Several factors, however, convinced NEC Yamagata to switch instead to installing production equipment compatible with 300mm wafers," said Kyoji Yamamoto, executive vice president, NEC Electronics Corporation. "Chief among these was a dramatic improvement in investment efficiency gained from the enhanced performance and quality level of production equipment compatible with 300mm wafers. Clinching the decision was a technological assessment that a production line using 300mm wafers would have a yield comparable to that of a 200mm wafer line."

For an overview of the new production line, please refer to the attachment.



About NEC Yamagata
NEC Yamagata, Ltd., headquartered in Tsuruoka City, Yamagata, Japan, is one of the main manufacturing subsidiaries of NEC Electronics Corporation. Since its establishment on June 22, 1964, NEC Yamagata has been engaged in the production of semiconductor devices covering various product categories from leading edge System LSIs to discrete devices. The company is capable of wafer fabrication, assembly and testing and has marked approximately 73 billion yen net sales in fiscal year 2003. NEC Yamagata is a wholly-owned subsidiary of NEC Electronics Corporation.

About NEC Electronics Corporation
NEC Electronics Corporation (TSE: 6723) specializes in semiconductor products encompassing advanced technology solutions for the high-end computing and broadband networking markets, system solutions for the mobile handsets, PC peripherals, automotive and digital consumer markets, and platform solutions for a wide range of customer applications. NEC Electronics Corporation has 24 subsidiaries worldwide including NEC Electronics America, Inc. (www.am.necel.com) and NEC Electronics (Europe) GmbH (www.ee.nec.de). For additional information about NEC Electronics worldwide, visit www.necel.com.

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