STMicroelectronics Inaugurates New State-of-the-Art 200mm MEMS Production Line in Italy


AGRATE BRIANZA, Milan, Nov. 27 -- STMicroelectronics, one of the world's largest semiconductor suppliers and an industry leader in the field of MEMS (Micro Electro-Mechanical Systems) devices, today inaugurated a new 200mm (8-inch) semiconductor wafer fabrication line dedicated to MEMS devices at its manufacturing site at Agrate, near Milan, Italy. ST is the first major MEMS manufacturer in the world to produce devices using 200mm wafers, which will reduce unit costs and accelerate both the expansion of current applications and the development of new MEMS markets.

MEMS technology, which allows the electrical and mechanical properties of silicon to be simultaneously exploited, is being rapidly adopted in a wide range of computer, consumer, automotive and industrial applications where the ability to measure or detect physical movement or inclination can be valuable in saving energy, making appliances easier to use, and providing a new level of realism and interaction in gaming systems.

"This significant investment in a 200mm production line underlines ST's commitment to maintaining a competitive manufacturing base in Italy," said Pietro Palella, General Manager, STMicroelectronics Italy. "As we move established manufacturing technologies to the Far East, in keeping with the global manufacturing trend, we are also continually capitalizing on the intellectual talents of Europe. This new facility reinforces ST's position at the leading edge of one of the world's most exciting markets. Our MEMS technology was originally developed in our nearby Castelletto design center, which is still our powerhouse for MEMS innovation, and we are proud that Agrate now hosts the world's most advanced MEMS production line."

The inauguration event featured a round-table discussion of Italy's role in high-tech industries by leading Italian academics, writers and industrialists, an overview of MEMS markets and opportunities presented by Benedetto Vigna, General Manager of ST's MEMS Business Unit, and a customer application example inside laptop computers, presented by Mr. Hisao Tsukazawa, Group Manager of Toshiba's PC Development Center.

"With a forecasted growth of around 100% in the five years from 2005 to 2010, the MEMS market is one of the most exciting segments of the semiconductor industry and the new state-of-the-art production line we have started in Agrate will allow us to further build on our leadership position in this area," said Benedetto Vigna.

So far, ST has invested approximately $40 million in transforming a former 150mm (6-inch) production area into a leading-edge MEMS production line. The new line, which currently occupies approximately 1,300 square meters and employs more than 100 people, is fully dedicated to MEMS devices, and also supports the MEMS R&D activities based in Castelletto. The area will be further increased to 2500 square meters in line with market demand.

With the worldwide MEMS market heading towards $10 billion by 2010*, the new MEMS production line will manufacture the hundreds of millions of parts of innovative accelerometers, gyroscopes, miniature microphones and pressure sensors required to serve the expanding market needs.

About STMicroelectronics

STMicroelectronics is a global leader in developing and delivering semiconductor solutions across the spectrum of microelectronics applications. An unrivalled combination of silicon and system expertise, manufacturing strength, Intellectual Property (IP) portfolio and strategic partners positions the Company at the forefront of System-on-Chip (SoC) technology and its products play a key role in enabling today's convergence markets. The Company's shares are traded on the New York Stock Exchange, on Euronext Paris and on the Milan Stock Exchange. In 2005, the Company's net revenues were $8.88 billion and net earnings were $266 million. Further information on ST can be found at www.st.com.

* ST estimate based on data from market research analysts In-Stat, Nexus and Yole Development.

MEMS devices, such as accelerometers and gyroscopes, have many applications, both established and emerging, across the whole spectrum of electronics. All of these applications are being fuelled by the decreasing cost of MEMS sensors, a critical factor that will be further accelerated by the move to 200mm wafers.

- In the consumer arena, these sensors can add an intuitive man-machine interface to game controllers and to portable equipment, such as mobile phones, MP3 players and PDAs, allowing the user's wrist, arm, and hand movements to interact with applications, navigate within and between pages, or move characters in a PC game. MEMS accelerometers are also essential for virtual reality games to sense movements of the players. MEMS sensors are also being used in digital cameras to compensate for unintentional movement while pictures are being taken. In the emerging market for robotic toys, accelerometers and gyroscopes sense the robot's movements so that it is 'aware' of its position in space.

- In the computer segment, MEMS sensors help provide data integrity protection in laptops and other portable devices. In case of a free fall or other abnormal movement, a MEMS sensor promptly instructs the system to stop all reading and writing operations, and move the magnetic head on the hard disk drive to a safety position.

- In the automotive field, MEMS devices have many applications, including airbag sensors, anti-theft alarms and navigation systems. In the last example, they are used in 'dead-reckoning' systems where monitoring of motion and distance traveled is used to maintain correct digital-compass readings in the temporary absence of the GPS signal.

- In the industrial sector, accelerometers are being used as vibration detectors in washing machines, dishwashers and other new home appliances to alert users to unbalanced loads and to detect excessive wear of mechanical parts before a failure occurs. Security systems are another important application area: antitheft alarms based on MEMS accelerometers can detect movement in any desired axis, protecting cars, briefcases, laptops and other mobile hardware from unauthorized removal and detecting movement of doors and windows.

FCMN Contact: awilkes@stantoncrenshaw.com

CONTACT: Michael Markowitz of STMicroelectronics, +1-212-821-8959, michael.markowitz@st.com

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