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NEC cuts Roseville wafer capacity by two-thirds
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NEC Corp.'s Roseville, Calif. wafer fab, once one of the largest chip factories in the U.S., has been scaled back by two-thirds as it completes its phaseout of DRAM production.

At its peak the Roseville fab had a capacity of 39K wafers a month, but that has been cut to a capacity of only 14K 8-inch wafers a month. An NEC spokeswoman said the remaining output will focus on System LSI chips.

The site was once selected for a new 300-mm wafer fab, but that plan has all but been dropped.

The fab's last back-end equipment for packaging and test will be auctioned off early in December. The spokeswoman said the System LSI chips made in the plant will now be sent to other NEC facilities for final assembly and test.

In other semiconductor activity, NEC said part of a $1.6 billion new offering of securities announced last week will be used for capital investment in all core businesses, including semiconductors. The securities include a Eurobond offering as well as a new type of non-voting Trust Preferred Securities.

Separately, NEC said that it will invest $25 million in Japan to set up a trial production line for next generation gallium arsenide wavelength division multiplexing (WDM) diodes. The line will be built next to the firm's existing fab for broadband telecommunication devices at Shiga, Japan. The facility is part of the new NEC Compound Semiconductor devices group, spun off as a separate subsidiary last month.






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