Infineon and Nanya to Cooperate on DRAM Memory Chips by Collaborating on Technology Development and Founding a Production Joint Venture

May 2, 2002 | Technology Media

Joint News Release by Infineon and Nanya

Munich/Germany, Taoyuen/Taiwan, Mai 2, 2002 – Following successful cooperation talks, Infineon Technologies (FSE/NYSE: IFX), Munich, and Nanya Technology Corporation (NTC), Taoyuen/Taiwan, have signed a non-binding Memorandum of Understanding (MoU) about a cooperation on standard memory chips (DRAMs). Under the terms of the agreement, the two semiconductor manufacturers will co-develop advanced 0.09-micron and 0.07-micron production technologies for 300mm wafers starting October 2002, sharing the development costs. The companies have also agreed to set up a 50:50 joint venture for the production of DRAM chips and to build a new joint 300mm facility in Taiwan. The first 300mm wafers will already be produced at the end of 2003, and in the first stage production should reach a capacity of approximately 20,000 wafer starts per month by the second half of 2004. The joint venture will be based in Taoyuen, Taiwan, close to Nanya’s current production facility. The transaction still requires approval by the antitrust authorities.

“With this MoU we are systematically expanding the cooperations with Taiwanese partners. We are resolutely strengthening our position in Asia and increasing our share in the worldwide market for memory chips”, explained Dr. Ulrich Schumacher, President and CEO of Infineon Technologies AG. “Nanya is an ideal partner for us as we both operate on the same technological base. Together we will develop future production processes on the basis of our leading 300mm technology and build an innovative 300mm semiconductor factory in Taiwan. This will enable us to extend our technology and cost leadership.”

“Our cooperation with Infineon represents a major step toward the combination of both company's strength in the trench DRAM technology development and manufacturing”, said Dr. Jih Lien, President of Nanya Technology.

The two companies will jointly develop the new 0.09-micron and 0.07-micron production technology at Infineon’s Dresden plant and also use it in the new joint venture facility. Production of 300mm wafers using the new 0.09-micron process will start in the new joint plant in Taoyuen at the end of 2003. Furthermore, it is planned to deploy the 0.09-micron production technology also for 200mm wafers. The basis for the joint development of the future production technology is the advanced DRAM trench technology for 300mm wafers from Infineon, which the company is licensing to Nanya. Infineon was the first company worldwide to start volume production of 300mm technology at the end of last year at its Dresden reference facility. The switch to the smaller 0.09-micron and 0.07-micron geometries in chip design will enable a further boost in productivity.

The production joint venture in Taoyuen will be integrated into Infineon’s international cluster of DRAM production sites, which comprises the production facilities in Dresden (Germany), Richmond, Virginia (USA) and ProMOS Technologies, the joint venture with Mosel Vitelic in Hsinchu (Taiwan). This concept of a global network of manufacturing plants guarantees the same high quality standards at all sites around the world and constant know-how transfer.

About Nanya


Nanya Technology Corporation (NTC) was founded on March 4, 1995. NTC specializes in research and development, design, production and sales of semiconductor products. Company President and CEO is Y.C. Wang, and the company’s largest shareholder is Nanya Plastics Corporation (Formosa Plastic Group). NTC began production of semiconductors in 1996 and opened its North American office in San Jose, California in 1997. The company has offered its foundry services since 1997. Further information on Nanya Technology is available on +1-408 441 7819 or at http://www.nanya.com. NTC headquarters in Taiwan can be reached on 886-3-328-1688 or at www.ntc.com.

About Infineon


Infineon Technologies AG, Munich, offers semiconductor and system solutions for applications in the wired and wireless communications markets, for security systems and smartcards, for the automotive and industrial sectors, as well as memory products. A global player, Infineon operates in the USA from San Jose, California, in the Asia-Pacific region from Singapore and in Japan from Tokyo. Employing about 33,800 people worldwide, the company achieved sales of EUR 5.67 billion in fiscal 2001 (ending September). Infineon is listed on the DAX index of the Frankfurt Stock Exchange and on the New York Stock Exchange (NYSE) under the ticker symbol IFX. Further information is available at www.infineon.com.

Safe Habor Statement


This press release contains forward-looking statements based on current expectations or beliefs, as well as a number of assumptions about future events. These statements and all other statements that are not historical facts, are subject to factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The reader is cautioned not to put undue reliance on these forward-looking statements, which are not a guarantee of future performance and are subject to a number of uncertainties and other factors, many of which are outside the control of Infineon and Nanya. The forward-looking statements in this release address a variety of subjects including, for example, the expected closing of the acquisition and the potential benefits of the acquisition. The following factors, among others, could cause actual results to differ materially from those described in these forward-looking statements: the integration of Nanya’s and Infineon’s business; costs associated with the acquisition; the successful completion of the acquisition; including applicable regulatory requirements relating to the transaction; increased competition and technological changes in the industries in which Nanya and Infineon operate. For a detailed discussion of these and other cautionary statements, please, refer to Infineon’s filings with the Securities and Exchange Commission.


Contact Nanya Technology Corporation


Charles Kau
Executive Vice President
Tel. +886-3-328-1688
Fax +886-3-396-0993
charleskau@ntc.com.tw

Information Number

INFMP200205.080e