Purpose law semiconductor and modern semiconductor of South Korea announce both sides have signed to build the agreements of joint venture of the forward end works of a memorizer jointly in China Jiangsu Province Wuxi, this special brand-new wafer works used for making DRAM and NAND flashing memory will contribute to the modern semiconductor (Hynix) The steady growth of DRAM business, and the purpose law semi-conductive company can set up the productivity of its NAND flashing memory through this factory. This co-partnership company can expand the successful NAND flashing memory process / product development effectively at the same time, and strengthen the production manufacturing capacity between two companies.
The factory selects the site in Wuxi because this area is easily accessible, neighbour on Shanghai, can offer to a large number of experienced technicians and workers, the foundation is well equipped. This advanced wafer works and planning to begin construction at the beginning of of 2005 over 18,000 square meters of clean factory building auxiliary facilities, after completing, the joint venture will employ about 1500 employees, will assemble two advanced technical production lines in initial stage of running, 8 the intersection of wafer and production line plan, schedule, begin batch productino, the batch productino since 2007 12 production line 2006 among them, it is 20000 slices that each one produces collinear monthly productivity. The new works will strengthen the technical leading advantage in the peak of two companies, make both parties of the joint venture obtain extremely high manufacturing capacity of cost competitiveness, serve the Chinese market growing at top speed more high-efficiently.
The Chinese market accounted for 14% of the semi-conductive market of the world at present, from 2003 to 2008, the annual compound growth rate of the Chinese market estimates that will be more than 20%; And to ST, the income from sales on the Chinese market has already reached 1,500 million dollars. Because of abundant flashing memory product mix ' Including NAND flashing memory IC of 1 giga) ,ST memorizer IC sales amount in China increasing fast, especially increase on the market of telecommunication fastest. Hynix sales amount in China occupied a large proportion sold in the whole world of this company too, this attributes to strong brand advantage that Hynix has made for many years.
Semi-conductive company's executive vice president and concurrently memorizer products general manager Carlo Bozotti of purpose law appraise: " This world-class wafer works makes ST become an intact solution provider, especially on and consume the electronic product market in telecommunicationsing, because we can offer the memorizer, multimedia processor and encapsulated system level solution of one piece. ST is revealing one's own capability to the world, we not merely can offer complicated system level chip and dedicated solution, still can offer the advanced products in enormous quantities with low costs to the cluster of customer that the range is more extensive. "
" Through this pool capital agreement, the relation between ST and Hynix has risen to ripe and overall industrial partnership relation, including responsibility and obligation for financial affairs and fund. " The semi-conductive company President & CEO Pasquale Pistorio gentleman of purpose law adds.
Chairman & CEO Eui-Jei Woo gentleman of modern semi-conductive limited company comments on the cooperation of both sides like this: " Hynix is very glad to expand the cooperation relation with ST, build a world-class wafer works in China. Hynix believes the cooperation of this mutual reciprocity and mutual benefit will be favorable to the long-term development of both sides, after through selling the business of nonvolatile memory and finishing restructuring, the profit of Hynix reached all-time high in 2004. The product mix of Hynix includes the main internal memory that the high-performance server uses, the display memory of the figure, mobile equipment memorizer, consuming and employing memorizer and NAND flashing memory. Through founding the factory in China, makes product mix diversified, Hynix plans to expand and consolidate the leading position of the company on the market of memorizer. "
This joint venture will strengthen the competitiveness of market of Hynix, because it can get the manufacture facilities of 300 - mm, can safeguard the leading position in the Chinese market, solve existence and potential trade problem. The new wafer works will guarantee ST can use DRAM products and technology with cost competitiveness in the new design, and meet the special customer's production demand.
Drafting 2 billion dollars of capital cost of this project, common financing of both parties of the joint venture (Hynix 67%, ST 33%) ,ST have dollar of long-term creditor's rightses among them, Chinese government department and local bank will offer for joint venture and make up financing, include debts and lease for a long time. ST and Hynix are going through formalities of examining and approving in the essential government and making the financing matters up. In 2005, the direct investment of ST and Hynix estimated that will reach about 375 million dollars, poured into the fund according to 1/3-2/3 of the proportions.
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