Nov. 13, 2002 – Munich, Germany, and Taoyuen, Taiwan – Infineon Technologies and Nanya Technology Corp. have signed final contracts concerning strategic cooperation on standard memory chips (DRAM).

The cooperation will help each partner expand its position in the DRAM market while sharing development costs. The agreement provides for the joint development of 0.09- and 0.07-micron production technologies for 300mm wafers.

Under the terms of the agreement the companies have also set up a 50:50 joint venture for the production of DRAM chips and will build a new joint 300mm facility in Taiwan. This facility will employ the production technology developed jointly by the companies. Maximum production capacity will approach 50,000 wafer starts/month once the facility is fully operational. Initial production of the first 300mm wafers in the new facility is expected in late 2003.

The new 300mm semiconductor facility will be constructed in two stages aligned with the growth and development of the world semiconductor market. The first stage, which is scheduled for completion in 2H04, will give the facility an initial monthly capacity of around 20,000 wafer starts. Completion of the second stage, currently anticipated for mid-2006, will increase capacity to around 50,000 wafer starts/month.

The total investment planned in the next three years amounts to around Euro 2.2 billion. Infineon and Nanya will each invest Euro 550 million in their memory chip production project until 2005, the lion’s share of which will be used to ramp up production in 2004 and 2005.

When operating at maximum capacity, the facility will create up to 1,300 new jobs in Taiwan.

The joint venture will be headquartered in Taoyuen/Taiwan, close to Nanya’s existing production site. Subject to approval by the antitrust authorities, the joint venture will commence business operations on Dec. 2.