Inotera Memories inaugurates largest DRAM production facility

Inotera Memories, a joint venture of Infineon Technologies AG and Nanya

Technology Corporation, announces the inauguration of its 300mm semiconductor

production facility recently.

The first DRAM chips using 110nm trench technology are already rolling off

the new production site located at HwaYa Technology Park, Taiwan. Inotera's

major production volume of memory products will contribute to Infineon

Technologies and Nanya Technology Corporation and help each partner to expand

its position in the DRAM market.

"We are very proud of having finished construction and started the ramp

up within a record time of only 18 months," says Charles Kau, President of

Inotera Memories. "Inotera combines Nanya's expertise in mass production

and efficient cost reduction capability with Infineon's world class technology

in 300mm production. We are dedicated to the continuous development of

state-of-the-art manufacturing technologies and processes, and are committed to

the manufacturing of high quality products at low cost with a high degree of

flexibility."

Producing memory products at 300mm DRAM production site with a total capacity of more than 50,000 wafer starts per month when fully operational

The strategic cooperation on standard memory chips between Infineon and Nanya

started in November 2002. Besides the set up of the 50:50 joint venture Inotera

Memories, both companies are jointly developing 90nm and 70nm trench

technologies.

The 300mm semiconductor facility will be equipped in two stages aligned with

the growth and development of the world semiconductor market. The first stage

has been completed according to schedule and the ramp up of DRAM products has

already started in April 2004. By the end of calendar year 2004, more than

20,000 wafer starts per month are planned. The initial production of memory

products at Inotera is based on the 110nm process technology; the transition to

90nm is expected to start in 2005.

Completion of the second stage is currently anticipated by the end of 2005.

The total capacity will then be increased to more than 50,000 wafer starts per

month, making Inotera the world's largest DRAM production facility.

The total investment of the joint venture amounts to around US-dollar 2.2

billion. Currently the company deploys 1,100 employees. With the completion of

the second stage the headcount is expected to increase by 500 employees to

approximately 1,600.

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