TOKYO--Hitachi Ltd. is considering outsourcing some production of its 16-bit H8 microprocessors to UMC Group in Taiwan as part of the Japanese firm's sweeping semiconductor cost cutting plans.
However, a spokesman in Tokyo today said the company was not planning to turn over some of its 32-bit SH series to UMC for production as was reported here earlier this week. Hitachi plans to be the sole producer of the more powerful microprocessor series, he said.
Hitachi is also considering using Episil Technologies Inc. of Taiwan as a foundry for transistors and ICs for television sets and consumer electronic products.
Hitachi posted a net loss of $3.2 billion in the 1999 fiscal year, ended March 31. Since then the Japanese chip maker has embarked on a major cost-cutting program to become profitable again. The company spokesman said the possibility of using Taiwan foundries was one of many restructuring plans under study.