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Toshiba and Winbond Enter Partnership in Production and Development of Semiconductor Memory Devices

8 December, 1995

Toshiba Corporation
Winbond Electronics Corporation

Tokyo -- Toshiba Corporation and Winbond Electronics Corporation, a leading semiconductor manufacturer in Taiwan, jointly announced today that they have signed an agreement to enter into an alliance for the manufacture and cooperative development of leading-edge semiconductor memory products. This is the first strategic alliance for Toshiba with a Taiwanese company in the area of semiconductors.

In the first initiative under the agreement, Toshiba will provide Winbond with production technologies for state-of-the-art 16-megabit DRAMs and next-generation 1-megabit high-speed SRAMs, semiconductor devices widely used in computers and other information equipment. Winbond will produce these devices in new 8 inch wafer fabrication plant, which will start operation in late 1996.

This alliance is based on mutual benefits it will bring to both companies in supporting their long-term growth in the semiconductor business. The project allows Winbond to expand its current product line to include leading-edge DRAMs and to enhance its current position in high-speed SRAMs, the largest segments of the semiconductor market. Toshiba will be able to share the qualified engineering and production resources of Winbond, and increase its supply capability of main products.

Toshiba will procure the output of the fabs from Winbond, and sell them under Toshiba brandname mainly in the Asian market. Procurement volume will be discussed between the two companies.

In order to meet rapidly diversifying customer requirements, both companies also plan to cooperate on development of derivative products based on the design of memory products transferred to Winbond, and will seek various other opportunies to further this strategic partnership.

"The partnership is an important element of Toshiba's semiconductor business development programs to enhance cooperation with leading global companies and reinforce our capacity to supply key products to customers worldwide," said Mr. Masanobu Ohyama, executive vice president of Toshiba Corporation.

Mr. Arthur Y.C.Chiao, Chairman of Winbond Electronics Corporation said, "We are very pleased about the partnership with Toshiba. This major strategic alliance is a key step to accelerated access to advanced technology in DRAM and the enhancement in its high-speed SRAM product line. The project will lay the foundation for Winbond to become a world class DRAM supplier before the end of this century. With a complete memory product line, Winbond will be able to better serve its customers."

The world semiconductor market is expected to achieve a strong long-term growth over the coming years. WSTS, a leading US marketing firm, estimate the US$146 billion global market in 1995 will expand to US$262 billion in 1998. The memory products market, among others, is expected to achieve a 28 % growth from 1995 to 1998.

Information in the press releases, including product prices and specifications, content of services and contact information, is current on the date of the press announcement,but is subject to change without prior notice.

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