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Toshiba, Fujitsu form assembly, test JV in China

Posted: 19 Feb 2010 ?? ?Print Version ?Bookmark and Share

Keywords:LSI test? assembly? Toshiba Fujitsu JV? back-end process?

Toshiba Corp. and China subsidiary, Toshiba Semiconductor (Wuxi) Co. Ltd (TSW), have signed a definitive agreement with Nantong Fujitsu Microelectronics Co. Ltd (NFME) to form a manufacturing joint venture in China for the semiconductor back-end process. The agreement is based on the memorandum of understanding between the companies executed in November 2009, and the companies now expect to start operation of the joint venture in April 2010.

The agreement calls for TSW to fold its back-end process facilities into a joint venture that will initially be 80 percent owned by TSW and 20 percent by NFME. The initial investment ratio may be adjusted among the parties in the next few years. Through this cooperative relationship, Toshiba will regard NFME as a strategic partner in the back-end process area.

Following establishment of the JV, TSW will retain capabilities in manufacturing management and function as a local base for Toshiba to promote an outsourcing system for the back-end process.

Toshiba's recent measures in the system LSI back-end process include acceleration in making more use of outsourcing services and increasing the overseas production ratio. The proposed JV with NFME builds on and extends this strategy.

Toshiba will promote the restructuring of its semiconductor business announced in January 2009 and strengthen the business structure to improve profitability.

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