To improve efficiency in semiconductor development and production, and to promote synergy between manufacturing companies and business units, NEC Electronics Corp. today introduced plans to reorganize its manufacturing facilities in Japan. As a result of reorganization, seven semiconductor companies will be turned into three with some facilities facing close down.

The realignment of the six manufacturing companies into a three-pronged model is expected to occur in April 2008.

Presently NEC Electronics has seven limited liability companies dealing with semiconductors:

• NEC Kyushu, which does front-end manufacturing and sales of integrated circuits, has 2200 employees and is based in Kumamoto, Japan.
• NEC Yamaguchi, which does front-end manufacturing and sales of integrated circuits, has 1200 employees and is based in Yamaguchi, Japan.
• NEC Semicon Package Solutions, which does back-end manufacturing and sales of integrated circuits, has 1500 employees and is based in Fukuoka, Japan.
• NEC Kansai, which does front-end manufacturing and sales of integrated circuits and discrete devices, has 2300 employees and is based in Shinga, Japan
• NEC Fukui, which does back-end manufacturing and sales of integrated circuits and discrete devices, has 850 employees and is based in Fukui, Japan
• NEC Yamagata, which deals with semiconductor manufacturing, has 1500 employees and is based in Yamagata, Japan.
• NEC Electronics’ 300mm Experimental Line in Sagamihara, which develops manufacturing processes for NEC and makes highly-integrated chips for various devices.

Currently, NEC Electronics conducts semiconductor development, prototyping, and manufacturing at its facility in Sagamihara, with a production capacity of 2000 300mm wafers per month. The company will transfer these functions to a new location on the premises of NEC Yamagata, its most advanced manufacturing subsidiary by March 2009. As a result, the company’s development and prototyping capabilities will be in the same location as its volume production line, enabling a seamless continuation from product development to manufacturing.

The majority of the approximately 700 NEC Electronics Group employees at the 300mm line in Sagamihara will be transferred to Yamagata, the site of the recently announced 32nm joint development in Yokohama, or NEC Electronics’ headquarters in Kawasaki.

In addition, NEC Electronics will strengthen the collaboration between the company’s manufacturing companies by aligning them directly with its three business units – System-on-Chip (SoC), Microcomputer (MCU), and Discrete & IC.

NEC Kyushu, NEC Yamaguchi, and NEC Semicon Package Solutions will be integrated into one company, which will serve as the flagship manufacturing facility for the microcomputer (MCU) business unit.

NEC Kansai and NEC Fukui will also be integrated, and serve as the main manufacturing facility for power management devices, display drivers, and compound semiconductor devices for the Discrete & IC business unit.

The integration of manufacturing facilities will allow NEC to cut down the workforce and, perhaps, sell certain facilities off.