Manufacturing Equipment

SUZHOU, China & TOKYO, Aug 06, 2008 (BUSINESS WIRE) — Japan’s Elpida Memory, Inc. (TOKYO:6665) and China’s Suzhou Venture Group Co., Ltd. (SVG) today announced that they have agreed to establish a joint venture company by the end of 2008 to produce DRAM (Dynamic Random Access Memory) chips in Suzhou City of Jiangsu Province, China. The companies intend to build a 300mm wafer fabrication facility (fab) in Suzhou Industrial Park to meet growing DRAM demand in the Chinese market.
The joint venture, which will be located on a site area of 320,000 square meters, is expected to start operations in the first quarter of CY 2010. Initial production plans call for 40,000 wafers per month (wpm), rising to 80,000 wpm at a later stage. Elpida’s 50nm DRAM process technology will be used at the beginning and migration to 40nm will take place as soon as the process is ready. Elpida will purchase 100% of the products manufactured at the fab.
Suzhou Industrial Park Administrative Committee (SIPAC) will be responsible for fab construction and infrastructure installation. The purchase of the manufacturing equipment for 40,000 wpm capacity will be funded by the new joint venture securing bank borrowings in addition to an equity investment of US$720 million shared by Elpida and SVG as well as a potential third-party investor(s). Elpida plans to hold 39% of the shares that will be issued by the new joint venture company, with the remaining 61% to be held by SVG and the potential third-party investor(s).
The total capital expenditure for the new fab up to 80,000 wpm capacity, in longer term, may reach approximately US$5 billion. Moreover, opportunities for an even larger expansion of capacity in Suzhou Industrial Park will also be considered.
“We believe it is critical to invest in the rapidly growing China market to better serve our customers,” said Yukio Sakamoto, President and Chief Executive Officer of Elpida. “This joint venture opens an opportunity for Elpida to strengthen its production and marketing profile in China and the entire Asian market. In addition, we can accomplish cost efficient investments based on shared capital expenditures and shared business risks.”
According to SVG President Lin Xianghong, “Our SVG manages specialized funds focused on the hi-tech industry, especially the fields of semiconductors and ICs (integrated circuits). We’re delighted to cooperate with Elpida and believe it will be a successful investment.”
Suzhou Industrial Park is China’s premier high-tech manufacturing hub for many Fortune 500 companies. In 2006 it was ranked #1 among China’s top 20 development zones for the comprehensiveness of its infrastructure and its efficiency. Survey was conducted and sponsored by Chinese Academy of Social Sciences.
The joint venture combines cutting-edge DRAM technologies from Elpida, a leading DRAM maker, and venture capitalist SVG along with strong support from SIPAC. The combination is expected to result in highly competitive and leading-edge semiconductor products that will be made available to mainly China’s domestic market. It will also contribute to regional economic development through local materials procurement and the creation of new jobs.
Gartner expects PC shipments in China to grow at a compound annual rate of 18% between 2007 and 2012 and reach approximately 80 million units or 18% of the worldwide shipments(a). This growth will rapidly generate large DRAM demand in the Chinese market which the new joint venture can help satisfy.
The above-mentioned agreement to establish the joint venture company is subject to the final agreement among Elpida, SVG and the potential third-party investor(s), which is expected to be reached in the near future.
About Elpida
Elpida Memory, Inc. (TOKYO:6665) is a leading manufacturer of Dynamic Random Access Memory (DRAM) integrated circuits. The company’s design, manufacturing and sales operations are backed by world class technological expertise. Its 300mm manufacturing facilities, consisting of its Hiroshima Plant and a Taiwan-based joint venture, Rexchip Electronics, utilize the most advanced manufacturing technologies available. Elpida’s portfolio features such characteristics as high-density, high-speed, low power and small packaging profiles. The company provides DRAM solutions across a wide range of applications, including high-end servers, mobile phones and digital consumer electronics. More information can be found at http://www.elpida.com.
About SVG
Suzhou Venture Group Co., Ltd. (SVG), founded on 28th September 2007, was reconstructed on the former local venture capital entity China-Singapore Suzhou Industrial Park Ventures Co., Ltd (CSVC). SVG is now a leading national investment corporation with registered Capital of three billion RMB (US$ 400M) and total cash and assets under management of about eight billion RMB (by July, 2008). SVG manages one of the largest PE Fund (Total size: RMB 10 billion) in China, SIP VC Fund of Funds (RMB 1 billion), Cowind Seed-Stage Fund (RMB 0.3 billion), a Fund Guarantee Company, and the Biobay as a bio- & nano-science innovation center.
Information in this news release is current as of the timing of the release, but may be revised later without notice.
(a) Source: Gartner “Forecast: PCs, Asia/Pacific, June 2008 Update” Lillian Tay, 12 June 2008, GJ08383

New Delhi, August 3 : The worst may be over for India’s manufacturing sector, a Ficci survey has said but rival industry body CII has demonstrated a cause of concern as its performance review reported increase in the number of sectors showing negative growth in April-June 2008. In a CII survey tracking the performance of various manufacturing sectors, those reporting negative growth increased from 13.86 per cent in April-June 2007 to 21 per cent in the same months of the current year. The percentage has also gone down for areas reporting ‘excellent’ and ‘moderate’ growth. While the areas recording excellent growth dipped from 23.76 per cent to 7 per cent in the period under review, those with moderate growth went down from 35.64 per cent to 32 per cent.

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The Ficci survey on the other hand sounded optimistic and projected an improved 9.5 per cent growth for the manufacturing sector in 2008-09 on the back of increased investment leading to substantial capacity addition. “The worst may be over for India’s manufacturing sector. The overall manufacturing growth rate is projected to rise to 9.5 per cent in 2008-09, after declining to 8.8 per cent in the 2007-08 from a high of 12.3 per cent in the previous year,” Ficci said.

The manufacturing sector has been putting up a poor performance, with a high interest regime taking a toll on the growth of the sector. It grew by a meagre 3.9 per cent in May 2008, as compared to 11.3 per cent in the year-ago period. Manufacturing has a weight of over 79 per cent in the overall Index of Industrial Production. Of the 100 sectors surveyed by Ficci, as many as 67 are poised to achieve ‘excellent’ to ‘high’ growth rates ranging 10-20 per cent or more.

Groups such as speciality chemicals, earth moving and construction equipment, industrial valves, printing machinery, frost free refrigerators, micro wave ovens and skin care and cosmetics are expected to lead the charge, it added.

13.86 to 21 pc The increase in percentage of sectors showing negative growth, as per a CII survey

67 pcThe sectors poised to achieve ‘excellent’ to ‘high’ growth rates, as per a Ficci report

(live-PR.com) - Seattle, WA and Boston, MA - IndustrialSAVER (www.IndustrialSaver.com), a national auction and auctioneers directory and marketplace to buy and sell new and used industrial equipment, heavy construction equipment and machinery announced today its new partnership with IndustrialPR (www.IndustrialPR.net), a news-based website providing stories and reviews on newly released products, technologies and manufacturing solutions in the global industrial marketplace.

According to Rhonda McDougal, spokeswoman for the two companies, the new partnership will enable both Web sites to provide its members and users with additional tools and resources to promote their line of industrial and construction equipment, supplies and materials. McDougal said IndustrialPR will create and send RSS news feeds for IndustrialSAVER’s members of plant engineers, facility managers, construction equipment dealers and others involved in selling or sourcing manufacturing and construction products.

“As one of the leading manufacturing and engineering news site on the Web IndustrialPR will prove to be an important asset and strategic partner with IndustrialSAVER because of the mutually targeted markets the two Web sites serve,” says McDougal. She added, “In today’s growing competitive industrial marketplace companies need to stay informed of the latest and most innovative products being designed and produced for industrial applications. IndustrialPR will allow IndustrialSAVER to serve their audience more efficiently and provide them with the news they need to stay ahead in their industry.”

IndustrialSAVER recently began to feature pre-selected auctions on its Web site from nationwide auctioneers and various auction sites specializing in industrial and construction equipment. The company also indicated it has plans to launch their own on-line auction platform enabling users to sell and bid on a wide variety of industrial and construction supplies, materials, machine tools, heavy equipment, hydraulics, metalworking equipment and allied products.

About Industrial SAVER

IndustrialSAVER.com is an international industrial auction site and on-line auction directory for buyers and suppliers of construction and industrial supplies, machinery and heavy equipment at www.IndustrialSAVER.com.