Tokyo, Japan, March 29, 2001 -- Hitachi, Ltd. (TSE: 6501) and Hitachi
Kokusai Electric Inc. (TSE: 6756) have reached an agreement concerning
Akita Electronics Co., Ltd., a manufacturer of electronic components
that is owned jointly by Hitachi, which has 51% of Akita Electronics
shares, and Hitachi Kokusai Electric, which has the remaining 49%.
Under the agreement, Hitachi Kokusai Electric will sell its 49% to
Hitachi, making Akita Electronics a wholly-owned subsidiary of Hitachi,
Ltd. The transfer of the shares will take place on March 30.
Akita Electronics, which was established in 1969, is engaged mainly
in backend process packaging and testing of semiconductor devices,
most of which are sold to Hitachi via Hitachi Kokusai Electric.
In its medium-term business plan, the i.e. HITACHI Plan,
announced in November 1999, Hitachi stated its intention to strategically
employ the resources of the Hitachi Group to reform itself, both qualitatively
and structurally, into the best solutions partner for its customers.
Also, as part of Hitachi's basic policy of increasing its total market
value, the company has been moving ahead with the implementation of
a consolidated management system, in line with Hitachi Group based
reorganizations, reappraisals and coordinations.
Making Akita Electronics a wholly-owned subsidiary will provide a
stronger integration between wafer fabrication and assembly fabrication,
enabling Hitachi to respond with more flexibility and mobility to
rapid changes in the semiconductor market.
Since its merger last October, Hitachi Kokusai Electric has been undergoing
a reorganization and a reappraisal of its scope of operations, with
the focus on future business development and progress. The selling
of its shares in Akita Electronics is one part of this process, while
another is a decision to refocus operations in the three areas of
wireless communications and information systems, broadcasting and
video systems, and semiconductor manufacturing systems, in place of
the previous four divisions, which included electronic components.
About Akita Electronics Co., Ltd.
1. Company Name: |
Akita Electronics Co., Ltd. |
2. Head Office: |
64, Naganuma, Tennou, Tennou-machi,
Minami-akita-gun, Akita |
3. President: |
Shunji Shimada |
4. Capital: |
480 million yen
(Hitachi: 51%; Hitachi Kokusai Electric: 49%) |
5. Sales: |
Approximately 60 billion yen
(estimated for fiscal year ending March 31, 2001) |
6. No. of Employees: |
Approximately 1,000 (estimated as of
March 31, 2001) |
7. Business: |
Assembly fabrication of semiconductor
products and manufacture and sales of semiconductor related software |
About Hitachi, Ltd
Hitachi, Ltd., headquartered in Tokyo, Japan, is one
of the world's leading global electronics companies, with fiscal 1999
(ended March 31, 2000) consolidated sales of 8,001 billion yen ($75.5
billion*). The company manufactures and markets a wide range of products,
including computers, semiconductors, consumer products and power and
industrial equipment. For more information on Hitachi, Ltd., please
visit Hitachi's Web site at http://global.hitachi.com.
*At an exchange rate of 106 yen to the dollar
About Hitachi Kokusai Electric
Inc.
1. Company Name: |
Hitachi Kokusai Electric Inc. |
2. Head Office: |
14-20, Higashi-Nakano 3-chome, Nakano-ku,
Tokyo |
3. President: |
Makoto Endo |
4. Capital: |
10,058 million yen (as of October 1,
2000) |
5. Sales: |
125 billion yen
(consolidated basis, for fiscal year ended March 31, 2000) |
6. No. of Employees: |
3,754 (non-consolidated basis, as of
October 1, 2000) |
|