Tokyo, Japan, July 24 ,2002- Hitachi, Ltd. (TSE:6501, NYSE:HIT, Hitachi)
today announced plans to integrate four semiconductor manufacturing
companies into two new companies on October 1, 2002. Hitachi will
integrate Hitachi Tohbu Semiconductor, Ltd., Hitachi Tokyo Electronics
Co., Ltd., Hitachi Hokkai Semiconductor, Ltd. and Hitachi Yonezawa
Electronics Co., Ltd. into East Japan Semiconductor Technologies Co.,
Ltd. (tentative name) and North Japan Semiconductor Technologies Co.,
Ltd. (tentative name), as detailed below.
Hitachi has been executing a series of plans to reconstruct its semiconductor
business. Actions taken have included integrating and restructuring
manufacturing operations as well as design and sales companies. The
latest move aims to concentrate resources on new companies, thereby
raising operating efficiency and strengthening manufacturing businesses.
Concentrating engineers on new companies will foster stronger technological
and development capabilities, while integration will enhance efficiency
and promote faster decision-making. The ultimate result should be
a more robust operating structure and stable growth.
Plans call for Hitachi Tohbu Semiconductor and Hitachi Tokyo Electronics
to merge, with the former being the surviving company, which will
then be renamed East Japan Semiconductor Technologies. Coinciding
with this, East Japan Semiconductor Technologies will absorb the Sagami
Works of Hitachi Hokkai Semiconductor. The second new company, North
Japan Semiconductor Technologies, will be formed from a merger of
Hitachi Hokkai Semiconductor and Hitachi Yonezawa Electronics, after
spin off the Sagami Works from the former company. Hitachi Hokkai
Semiconductor will be the surviving company and renamed.
East Japan Semiconductor Technologies will inherit the sophisticated
module, packaging and taping mounting technologies of its two constituent
companies, as well as some of large module mounting lines. The company
will leverage these assets as Hitachi's main back-end (assembly and
inspection) manufacturing company for multi-purpose semiconductors,
notably transistors and diodes. It will also function as the mother
fab for quickly developing and bringing to market new products.
Meanwhile, North Japan Semiconductor Technologies will integrate
the microprocessor manufacturing operations of its two constituent
companies; the operations of Hitachi Hokkai Semiconductor-which performs
everything from front-end manufacturing processes (fabricating IC
s and LSI elements on silicon wafers) notably for the H8 series and
SuperHTM family, to back-end processing-and back-end manufacturing
processing performed by Hitachi Yonezawa Electronics. This restructuring
strongly positions North Japan Semiconductor Technologies as Hitachi's
main entity for the integrated manufacture of microprocessors.
The latest round of restructuring is not intended simply to enhance
flexibility in production, such as by sharing facilities, and upgrade
technology and development capabilities. Raising the efficiency of
sales, technical support and peripheral tasks, will facilitate a swifter,
more agile response to customers' diversifying needs.
* SuperH is a trademark of Hitachi, Ltd.
Profile of New Companies After Integration (On October 1, 2002)
| East Japan Semiconductor Technologies
Co., Ltd. (tentative) |
| 1. Headquarters: |
3-3-2 Fujihashi, Ohme-shi, Tokyo |
| 2. Capital: |
¥2,060 million (Hitachi, Ltd. 100%) |
| 3. President: |
Yasutake Kuki |
| 4. Employees: |
about 2,250 |
| North Japan Semiconductor Technologies
Co., Ltd. (tentative) |
| 1. Headquarters: |
1007-39, Izumisawa, Chitose-shi, Hokkaido |
| 2. Capital: |
¥2,550 million (Hitachi, Ltd. 100%) |
| 3. President: |
Koji Yamanaka |
| 4. Employees: |
about 2,030 |
Profile of Companies Before Integration (As of March 31, 2002)
| Hitachi Hokkai Semiconductor, Ltd. |
| 1. Headquarters: |
145, Aza Nakajima, Kameda-gun, Hokkaido
|
| 2. Established: |
May 1970 |
| 3. Capital: |
¥2,400 million (Hitachi, Ltd. 90%,
Hitachi ULSI Systems Co., Ltd. 10%) |
| 4. President: |
Sadao Yoneyama |
| 5. Net sales: |
¥73.9 billion (Year ended March
31, 2002)
(The fiscal year ending March 31, 2002) |
| 6. Employees: |
1,650 (As of March 31, 2002) |
| 7. Business: |
Development, design, manufacture and
sales of semiconductors and semiconductor application products. |
| Hitachi Yonezawa Electronics Co.,
Ltd. |
| 1. Headquarters: |
Aza Yagihashi Hanazawa Yonezawa-shi,
Yamagata |
| 2. Established: |
January 1969 |
| 3. Capital: |
¥330 million (Hitachi, Ltd. 100%) |
| 4. President: |
Hitoshi Horimuki |
| 5. Net sales: |
¥35.0 billion (Year ended March
31, 2002) |
| 6. Employees: |
570 (As of March 31, 2002) |
| 7. Business: |
Semiconductor back-end processing and
development, design, manufacture and sales of system boards. |
| Hitachi Tohbu Semiconductor, Ltd. |
| 1. Headquarters: |
1-1 Nishi Yokotemachi, Takasaki City,
Gunma |
| 2. Established: |
February 1965 |
| 3. Capital: |
¥1,280 million (Hitachi, Ltd. 100%) |
| 4. President: |
Natsuki Kogiso |
| 5. Net sales: |
¥87.0 billion (Year ended March
31, 2002) |
| 6. Employees: |
1,321 (As of March 31, 2002) |
| 7. Business: |
Development, design, manufacture and
sales of multi-purpose semiconductors |
| Hitachi Tokyo Electronics Co., Ltd. |
| 1. Headquarters: |
3-3-2 Fujihashi, Ohme-shi, Tokyo |
| 2. Established: |
May 1963 |
| 3. Capital: |
¥600 million (Hitachi, Ltd. 100%) |
| 4. President: |
Yasutake Kuki |
| 5. Net sales: |
¥50.2 billion (Year ended March
31, 2002) |
| 6. Employees: |
904 (As of March 31, 2002) |
| 7. Business: |
Manufacture and sales of semiconductor
devices and semiconductor equipment. |
|
