TOKYO -- Hitachi Ltd. and United Microelectronics Corp. today announced plans to discontinue their joint-venture 300-mm fab company in Hitachinaka City, Japan, just two years after forming Trecenti Technologies Inc. to jump-start production on larger diameter wafers. The move comes after reports that UMC and Hitachi were negotiating a restructuring of the joint-venture 300-mm fab.
Hitachi said it will acquire UMC's 40% share in Trecenti and turn the 300-mm (12-inch) fab into a wholly-owned subsidiary. The transaction is scheduled to be completed by the end of April.
The two companies blamed the severe semiconductor downturn for their change in strategy to share 300-mm wafer production at Trecenti, which according to Hitachi and Taiwan-based UMC was the first 12-inch fab to start mass production using single-wafer processing tools. The joint-venture fab has process technologies down to the 0.13-micron node.
Earlier this month, UMC officials said they were seeking to gain management control of Trecenti (see Feb. 8 story), but those efforts apparently failed.
Hitachi and silicon foundry supplier UMC said they have decided to focus their resources on separate 300-mm efforts. UMC, the world's second largest pure-play chip foundry, said it will concentrate 300-mm production efforts at its wholly-owned Fab 12A facility in Hsinchu, Taiwan, and in its Singapore subsidiary, which houses the UMCi joint venture with Infineon Technologies AG of Germany and a planned joint-venture 300-mm production company--called AU Pte Ltd.--with Advanced Micro Devices Inc. (see Jan. 31 story).
In March 2000, Trecenti was set up at a production site originally owned by Hitachi, and the 300-mm joint-venture fab produced its first devices--SRAMs--two months ahead of schedule later that year (see Dec. 4, 2000, story).
"Hitachi will use Trecenti, which will be our most advanced fab, along with Hitachi Nippon Steel Semiconductor Singapore Pte. Ltd. and the N2 line in Naka, in order to manufacture System LSIs, flash memories and SRAMs," said Satoru Ito, president and chief executive officer of Hitachi's semiconductor and integrated circuits group. "Although UMC and Hitachi will terminate the joint venture agreement regarding Trecenti, we will keep our good relationship," he added.
Also saying that the breakup was amicable, UMC board member and general manager H.J. Wu said the joint venture enabled the Taiwan foundry to accelerate its learning curve in 300-mm processing. "However, the current industry slowdown makes it necessary for us to concentrate our resources on our Fab 12A 300-mm manufacturing facility in Taiwan, our 300-mm subsidiary company in Singapore, UMCi, and our joint venture company with AMD, AU Pte Ltd.," he added.