Infineon and Taiwanese UEC to Establish a Joint Venture for Fiber Optics Components

Aug 13, 2003 | Market News

Joint News Release by Infineon and UEC

Munich/Hsinchu, Taiwan, August 13, 2003 - Infineon Technologies AG (FSE/NYSE: IFX), the world’s six-largest semiconductor manufacturer, today announced that it has signed an agreement with United Epitaxy Company (UEC), Taiwan, to set up a joint venture for the manufacturing and development of fiber optics components. The joint venture will be based within the existing facility of UEC at Hsinchu Science-based Industrial Park in Taiwan and will be established in October 2003.

Subject to approval by the German anti-trust authority, Infineon will hold 56 percent of the shares of the joint venture and UEC the remainder 44 percent. The total investment over the next five years including business start-up, manufacturing site, equipment, and other infrastructures, amounts to approximately US$ 12 million and will be made according to the shareholding ratio of the parent companies. When operating at full capacity of up to 100 wafer starts per week the joint venture will employ around 120 people.

The new company will integrate fiber optics technology of the two parent companies to achieve manufacturing and development synergies. Under the terms of the agreement, both companies will license their respective technology to the joint venture. In return, the new company will manufacture in particular optochips for Infineon and UEC. Both partners will assemble the optochips into high-end micro systems and components for the market of high-speed data transmission products based on fiber optic technology. These products are used in telecommunication and data communication networks.

“Taiwan is always an engine of the global IT industry. This JV between Infineon and UEC is our further recognition of Taiwan’s role in global IT industry,” said Mr. Loh Kin Wah, President of Infineon Technologies Asia Pacific Pte Ltd. ”This joint venture will ensure sufficient supply and develop the most competitive fiber optics products for Infineon and UEC.”

”The JV between Infineon and UEC, supports the Taiwan government’s policies for industry upgrading, bringing in the world’s cutting-edge optical communications technology,” said Kuo-Hsin Huang, Chairman, United Epitaxy Co. “The cooperation with Infineon is also expected to enhance R&D and manufacturing capability at the new company because of Infineon’s global leadership in the fiber optics communications field and UEC’s prowess of manufacturing.”

The joint venture is scheduled to be established in October 2003; clean room and major equipment installation is expected to be completed within the fourth quarter of 2003 with trial production slated for the first quarter of 2004 and mass production for the fourth quarter of 2004.

About Infineon

Infineon Technologies AG, Munich, Germany, offers semiconductor and system solutions for the automotive and industrial sectors, for applications in the wired communications markets, secure mobile solutions as well as memory products. With a global presence, Infineon operates in the US from San Jose, CA, in the Asia-Pacific region from Singapore and in Japan from Tokyo. In fiscal year 2002 (ending September), the company achieved sales of Euro 5.21 billion with about 30,400 employees worldwide. Infineon is listed on the DAX index of the Frankfurt Stock Exchange and on the New York Stock Exchange (ticker symbol: IFX). Further information is available at

About United Epitaxy Company

Founded in 1993, United Epitaxy Company, Ltd. (UEC) is based in Taiwan’s Hsinchu Science-based Industrial Park, where the company has two manufacturing sites. It has another two sites respectively in the Tainan Science-based Industrial Park and Chung-ho, Taipei County as well as a wholly-owned subsidiary in Wuxi, Jiangsu Province of China. The UEC is listed on the Taiwan Stock Exchange (Stock) and Luxembourg Stock Exchange (ECB). It's the first company in Taiwan to usher in the Metal Organic Vapor Phase Epitaxy (MOVPE) technology, and it now has the world’s largest MOVPE manufacturing operation, with conventional LED and ultra bright AlGaInP and InGaN LED, laser diodes, high speed infrared LED and red LED, Si detectors, and HBT wafers as major products. UEC’s products are distributed around the world. The company keeps abreast of the world’s latest optoelectronic semiconductor technology development and has obtained, as well as been applying for, more 150 patents around the world. The UEC website URL is

Media Contact:
United Epitaxy Company
Phillips Chen
Phone: +886-3-5678000 ext. 2588

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