NEC Electronics America Announces Plan to Expand Semiconductor Manufacturing Capabilities


Facility in Roseville, California, to Offer 0.15-micron Process Technology

SANTA CLARA, Calif. and ROSEVILLE, Calif., Feb. 22 / -- NEC Electronics America, Inc. announced today that starting in fiscal year 2006, it will expand its semiconductor manufacturing capabilities in Roseville, California, to add 0.15-micron process using eight-inch wafers in addition to the current 0.35- and 0.25-micron processes using six-inch wafers.

The primary objective for this expansion is to provide next-generation, 0.15-micron-fabricated semiconductor devices driven by an expected increase in demand from customers primarily in the automotive industry. The company also expects to see an increase in demand for 0.15-micron technology from designers using general-purpose semiconductors in consumer devices such as digital cameras, memory sticks and mobile and handheld products.

"NEC Electronics America is extremely pleased to extend the commitment it made to customers, the city of Roseville and its surrounding communities beginning in 1982," said Yuichi Kawakami, president and CEO, NEC Electronics America. "This expansion will continue to benefit those entities, as well as the local employment base, and our company will benefit from the excellent resources available. It is a win-win situation for all."

The decision to expand manufacturing capabilities in Roseville was based on a number of factors, including the infrastructure already in place, the pool of qualified local talent, and support from the City of Roseville and the Sacramento Area Commerce and Trade Organization (SACTO). By moving to an eight-inch line, the company can increase production volumes to meet customer needs and create approximately 100 jobs over the next two years.

Equipment for 0.15-micron, eight-inch production will be installed in the current M-Line building to expand the plant's overall production capacity. Production on the six-inch line will continue until it becomes appropriate to transition to the eight-inch line based on customer needs.

"The city is delighted with NEC Electronics America's decision to upgrade its Roseville wafer fabrication facility. NEC Electronics America and its talented workforce are truly a cornerstone of Roseville's economy and high-tech reputation," said Mayor Gina Garbolino, City of Roseville. "We value our quarter-century relationship with the company and look forward to providing NEC Electronics America with the best possible service as it expands its presence in our city."

About NEC Electronics America, Inc.

NEC Electronics America, Inc., headquartered in Santa Clara, California, is a wholly owned subsidiary of NEC Electronics Corporation , a leading provider of semiconductor products encompassing advanced technology solutions for the broadband and communications markets; system solutions for the mobile, PC, automotive and digital consumer markets; and multi-market solutions for a wide range of customer applications. NEC Electronics America offers local manufacturing in Roseville, California, and the global manufacturing capabilities of its parent company. In the Americas, NEC Electronics America markets and sells industrial-type active-matrix LCD modules from NEC LCD Technologies, Ltd., a global leader in innovative display technologies. More information about the products offered by NEC Electronics America can be found at www.am.necel.com/ .

Source: NEC Electronics America, Inc.

CONTACT: Denise Iwata, +1-408-588-6160, or denise.iwata@am.necel.com, or Denise Garibaldi, +1-408-588-6620, or denise.garibaldi@am.necel.com, both of NEC Electronics America, Inc.

Web site: www.am.necel.com/

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