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NEC Electronics consolidates manufacturing lines

Posted: 19 Nov 2009 ?? ?Print Version ?Bookmark and Share

Keywords:NEC reorg? semiconductor manufacturing? test and assembly?

To strengthen cost competitiveness in semiconductor production, NEC Electronics Corp. is realigning its assembly and test facilities (back-end line) and consolidating its 5-inch wafer lines (front-end line) in Japan.

There are still many small-scale plants within Japan and NEC Electronics has been evaluating the best way to keep domestic production competitive and efficient.

NEC Semiconductors Kyushu Yamaguchi had built its additional building at Oita plant, and has started manufacturing of advanced packages started as of October. With the goal of expanding production volume efficiency, NEC Electronics then decided to transfer its small-scale assembly and test functions and employees from the current assembly and test facility in Fukuoka to NEC Semiconductors Kyushu Yamaguchi's production facility in Oita as well as to the facility in Kumamoto by September, 2011.

The company also decided to close the 5-inch wafer line at NEC Semiconductors Kasai's facility in Shiga by the end of March, 2012 to address the weak demand. Part of the production from the 5-inch wafer line at Shiga will be transferred to its 6-inch wafer line as well as to NEC Semiconductors Yamagata's 5-inch wafer line.

Currently, NEC Semiconductors Kyushu Yamaguchi Fukuoka facility operates as an assembly and test plant for manufacturing leading-edge flip-chip BGA (FCBGA) packages. To accelerate the productivity advance in the FCBGA packaging at the Oita plant, the copany decided to close the Fukuoka plant by September 2011 and will transfer its production volume at the Fukuoka plant into NEC Semiconductors Kyushu Yamaguchi's assembly and test plant in Oita. NEC Electronics will also transfer majority of its QFP and other package manufacturing to its assembly and test facility in Oita plant as well as Kumamoto Nishiki plant. The buildings and the ground at Fukuoka plant scheduled to be sold.

By consolidating the company's advanced chip package technology, the Oita plant will ramp up its capacity of FCBGA package manufacturing to a monthly production of 2 million units. NEC Semiconductors Kyushu Yamaguchi's Oita plant currently manufactures microcontrollers and SoCs in QFP packages with a monthly production of approximately 14 million units. In order to improve its manufacturing efficiency through scale expansion, NEC Electronics aims to expand its overall production capacity to 18 billion units per month during the fiscal year ending March 2012.

Meanwhile, the company is also consolidating its 5-inch wafer line at NEC Semiconductors Kansai Shiga facility. NEC Electronics has two 5-inch wafer lines and one of the lines at the NEC Semiconductors Kansai Shiga facility will be closed by March 2012. Some of the products that are manufactured at the Shiga facility will be transferred to its 6-inch wafer line as well as NEC Semiconductors Yamagata's 5-inch wafer line in Tsuruoka, Yamagata.





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