Tokyo, September 2, 1998 - Hitachi, Ltd. (NYSE:HIT) and its subsidiary Hitachi America, Ltd., today announced
the merger of Hitachi America subsidiaries Hitachi Semiconductor (America) Inc., Brisbane, Calif., and Hitachi Micro Systems Inc., San Jose, Calif., to create a unified organization focused on the design, development and marketing of large-scale integrated semiconductor systems. At the same time, the company's plant in Irving, Texas
will be idled.
The new organization, to be known as Hitachi Semiconductor (America) Inc., will be based in San Jose, Calif. It will emphasize the expansion of Hitachi's logic device business in North America.
The unit, employing about 370 people, will oversee development of Hitachi's semiconductor system solutions business in North America emphasizing integrated application of Hitachi's H8 microcontrollers and SuperH* family of RISC microprocessors, advanced memory technology and discrete analog devices. The new organization will also include an activity dedicated to the sale of DRAM memory devices in North America. The merger will be in effect as of October 1, 1998.
In making the announcement, Kosei Nomiya, who becomes
chairman of Hitachi Semiconductor (America) Inc. and is currently CEO of Hitachi Semiconductor and board director of Hitachi, Ltd., said, "The global semiconductor business continues to be dramatically affected by over-capacity in memory chips. Yet, at the same time, the growing need for intelligent command and control in many industries in North America is presenting important market opportunities for Hitachi. The formation of this new unit will allow Hitachi to focus greater resources on building a systems solution business in North America, while consolidating high-volume semiconductor production to a unified operating base to achieve greater operating efficiencies."
Commenting on the new organization, Dr. Peter O. Clark, vice president of Hitachi Micro Systems, who will be president and CEO of Hitachi Semiconductor (America), said, "Hitachi has formidable capabilities as
a systems-on-silicon supplier. Our challenge is to harness the company's hardware and software development tools, application software and documentation, board level demonstration systems and reference designs and platforms, together with complex systems level testing,
to give customers integrated systems solutions that satisfy
their product needs efficiently and seamlessly. Our goal
is to continue to serve both our logic and memory customers
in a manner that optimizes our resources to fit their
total requirements."
As a result of the merger and production idling, Hitachi will have a reduction of approximately 150 positions in California and 500 positions in Irving, Texas. Affected employees will be offered generous severance benefits, health care coverage options and outplacement services commensurate with years of service.
The idling of the production facility takes effect immediately. All manufacturing at the Irving plant, including both the
Wafer Fabrication and Final Assembly operations, will be stopped and the plant will be kept in a "ready state," as all alternatives are evaluated.
Commenting on the idling of the plant, Michael Hill, vice president of operations said, "The protracted slump
in the DRAM business left us with no other choices.
The market environment has continued to decline and our facility would have required substantial investment to support non-memory leading edge technology. Importantly, we have been fortunate over the years to have a talented group of employees and our goal is to help them make the transition to other employment as smoothly as possible."
Hitachi Semiconductor (America) Inc., a subsidiary of Hitachi America, Ltd., designs, develops, manufactures and markets a wide range of semiconductors, including microcontrollers, microprocessors, application-specific integrated circuits, memory and other components. Hitachi Micro Systems Inc., has most recently been Hitachi's LSI design and development arm for North America, supporting Hitachi Semiconductor (America) Inc.
Hitachi America Ltd., a wholly owned subsidiary of Hitachi, Ltd., Japan, markets and manufactures a broad range of electronics, computer systems and products, and semiconductors, and provides industrial equipment and services throughout North America.
Hitachi, Ltd. (NYSE: HIT), headquartered in Tokyo, Japan, is
one of the world's leading global electronics companies,
with fiscal 1997 (ending March 31, 1998) consolidated sales of 8,417 billion yen, 63.8 billion dollars**.
The company markets and manufactures a wide range of
products, including computers, semiconductors, consumer products and power and industrial equipment.
* SuperH is a trademark of Hitachi, Ltd.
** At an exchange rate of 132 yen to the dollar.
Outline of Hitachi Semiconductor (America) Inc. (As of October
1st ,1998)
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Location:
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San Jose, Calif.
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Capital:
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207.0 million dollars(October, 1998)
(100% owned by Hitachi America, Ltd.)
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Business:
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Design and marketing of semiconductor
microprocessors, ASICs, and high-end memory products
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Chairman:
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Kosei Nomiya (also board director of Hitachi,
Ltd.)
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President & CEO:
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Dr. Peter O. Clark
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Employees:
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370 employees at San Jose, Calif. (October, 1998)
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Outline of Hitachi America, Ltd.
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Location:
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Brisbane, Calif.
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Capital:
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320.3 million dollars(September, 1998.)
(100% owned by Hitachi, Ltd.)
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Business:
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Marketing and after-sales service of electrical and
electronic equipment, and procurement of parts and
materials
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President:
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Tomoharu Shimayama
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Employees:
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6,000 (Consolidated)
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WRITTEN BY Secretary's Office
All Rights Reserved,
Copyright (C)
1998, Hitachi, Ltd.
