NEC Yamagata Celebrates Launch of 300-millimeter Wafer Production Line

NEC Electronics Corporation (TSE:6723), a leading semiconductor company, and its wholly-owned manufacturing subsidiary NEC Yamagata Ltd. today held a ceremony marking the official launch of the 300-millimeter wafer fabrication line at NEC Yamagata's facilities in Tsuruoka, Japan. The event, attended by Tsuruoka mayor Yoichi Tomizuka, and approximately 150 guests and employees involved in the building of the line, showcased the companies' advanced manufacturing capabilities.

The 300-mm line at NEC Yamagata is optimized for leading edge semiconductor devices at the 130- and 90-nanometer nodes, for use in a wide range of customer products such as mobile phones and digital consumer applications. The highly efficient manufacturing system is designed to enable flexible and timely responses to fluctuations in production demand, and utilizes environmentally friendly processes such as lead-free manufacturing, reinforcing the companies' commitment to green technologies.

Manufacturing on 300-mm wafers first commenced at the end of 2004. The line currently produces 4,000 wafers per month, and production capacity will increase to 6,000 wafers per month by September with the installation of additional manufacturing equipment. Ultimately, as the line is further expanded to meet growing demand for 300-mm production, capacity is expected to reach 20,000 wafers per month, exceeding the companies' initial final target of 14,000 wafers per month. This boost in production capacity was made possible by a more efficient floor layout and improved efficiency of manufacturing equipment .

NEC Electronics and NEC Yamagata have allocated significant resources for the construction of the 300-mm line, investing approximately 80 billion yen last fiscal year (ended March 31, 2005) and hiring approximately 100 new employees to date.

"Our 300-millimeter line employs state-of-the-art manufacturing technologies and is the flagship facility of NEC Electronics," stated Susumu Sato, president of NEC Yamagata. "By improving production capacity and taking production efficiency to the next level, we will further improve our ability to deliver devices to customers and cement NEC Yamagata's position as a world-class 300-millimeter facility."

About NEC Yamagata

NEC Yamagata is a wholly-owned subsidiary of NEC Electronics Corporation which specializes in the manufacturing of system LSI and other advanced semiconductors devices. The company's operations include 200- and 300-millimeter wafer fabrication lines utilizing leading edge process technologies. Headquartered in Tsuruoka, Japan, NEC Yamagata was established in 1964 and now employs approximately 1,400 people.

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 multi-market solutions for a wide range of customer applications. NEC Electronics Corporation has 26 subsidiaries worldwide including NEC Electronics America, Inc. (www.am.necel.com) and NEC Electronics (Europe) GmbH (www.eu.necel.com). Additional information about NEC Electronics worldwide can be found at www.necel.com.