Germany’s Infineon Technologies and Nanya Technology of Taiwan have signed final contracts for strategic cooperation on standard DRAM memory. The cooperation will share costs for joint DRAM development of advanced 0.09µm and 0.07µm production technologies on 300mm wafers. The companies have also set up a 50-50 joint venture for the production of DRAM chips. A new joint 300mm facility will be built in Taiwan. Maximum production capacity will approach 50,000 wafer starts a month once the facility is fully operational. Initial production of the first 300mm wafers in the new facility is expected in late 2003.

Germany's Infineon Technologies and Nanya Technology of Taiwan have signed final contracts for strategic cooperation on standard DRAM memory. The cooperation will share costs for joint DRAM development of advanced 0.09µm and 0.07µm production technologies on 300mm wafers. The companies have also set up a 50-50 joint venture for the production of DRAM chips. A new joint 300mm facility will be built in Taiwan. Maximum production capacity will approach 50,000 wafer starts a 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 market-dependent stages. The first stage - scheduled for completion in H2 2004 - will give the facility an initial monthly capacity of around 20,000 wafer starts. Completion of the second stage - anticipated for mid-2006 - will increase capacity to around 50,000 wafer starts a month. The total investment planned over three years amounts to EUR2.2bn. Infineon and Nanya will each invest EUR550mn the project up to 2005. The majority of the money will be used to ramp up production in 2004 and 2005. The source of the EUR1.1bn gap has yet to be decided. This investment is not thought to be needed for some 18 months.

At maximum capacity, the facility will create up to 1300 new jobs in Taiwan. Subject to approval, the joint venture will commence business operations on December 2, 2002. Infineon and Nanya will between them commit more than 120 people to the development projects.

The first 300mm wafer memory products using the new 0.09µm process will leave the production line in late 2003. Plans are also in place to transfer the 0.09µm production technology to 200mm wafers. Infineon has already begun technical preparations for 0.09µm production. Infineons advanced DRAM trench technology for 300mm wafers will be licensed to Nanya.
Concerns about the financing of the venture contributed to lowering Infineon share - down 7%. While Nanya is one of the few DRAM producers making a profit, Infineon last week reported a Q4 net loss of EUR506mn.