NEC Semiconductors (UK) Ltd. to suspend operations

Dec. 20, 2001 – Livingston, Scotland – NEC Corp. will suspend operations of its semiconductor manufacturing facility, NEC Semiconductors (UK) Ltd. (NECSUK), located in Livingston, Scotland, beginning in April 2002.

As part of NEC’s global restructuring and in response to the downturn in the semiconductor industry, NEC has closed certain domestic production lines, including a pilot line at NEC’s Sagamihara plant and part of a wafer fab line at NEC Kyushu Ltd.

Also in overseas operations, NEC is carrying out restructuring measures to discontinue DRAM production, move to a system LSI (Large Scale Integration) concentrated production base, and reduce capacity and employee numbers at its wholly owned subsidiary in the US, NEC Electronics Inc.

Similarly, at NECSUK, the restructuring efforts announced in July are being carried out. These include halting DRAM production to focus operations on system LSI, reducing wafer capacity from 28,000 wafers/month to 15,000 wafers/month by the end of FY02, ending March 31, 2002, and reducing employees numbers from 1,600 to less than 1,000.

Reopening of NECSUK will be examined after further evaluation of market conditions and customer demand.


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