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Feasibility Study for Semiconductor Foundry Business Concludes

13 June, 2006

TOKYO, Japan, June 13, 2006 --- Advanced Process Semiconductor Foundry Planning Co., Ltd. ("Advanced Process Semiconductor Foundry Planning") today announced the results of the feasibility study of an independent semiconductor foundry business using advanced fabrication processes, as detailed below. Advanced Process Semiconductor Foundry Planning was established in January 2006 for the purpose of conducting this feasibility study.

(1) The study concluded that it is not feasible at this stage to establish semiconductor foundry business based on 65 nanometer (nm)* process technologies in light of current conditions in the semiconductor business worldwide.
(2) Regarding 45nm and finer semiconductor process technologies, the study recommended that it is desirable for Japanese semiconductor companies to aim for standardization of process technologies for certain aspects so as to effectively re-use IP and libraries of each company. This is based on the necessity to increase compatibility of applicable process technologies among the semiconductor companies from the standpoint of strengthening international competitiveness.

Based on the findings of this study, plans call for Advanced Process Semiconductor Foundry Planning to be dissolved at the end of June this year.

* One nanometer is a billionth of a meter.

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