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NEC Electronics Realigns Manufacturing Operations to Enhance Competitiveness


KAWASAKI, Japan, To strengthen cost competitiveness in semiconductor production, NEC Electronics Corporation (TSE: 6723) today announced plans to realign its assembly and test facilities (back-end line) and to consolidate its 5-inch wafer lines (front-end line) in Japan.
In order to realize a manufacturing structure with strong cost competitiveness, NEC Electronics has been progressing with the consolidation of its wafer fabrication lines from 13 to 8 lines as well as consolidation of its overseas operations of semiconductor assembly and test operations, while the company’s domestic assembly and test bases focused on manufacturing of its advanced value-added products and support of overseas sites.
There are still many small-scale plants within Japan and NEC Electronics has been evaluating the best way to keep domestic production competitive and efficient.
NEC Semiconductors Kyushu Yamaguchi had built its additional building at Oita plant, and has started manufacturing of advanced packages started as of October, 2009. With the goal of expanding production volume efficiency, NEC Electronics then decided to transfer its small-scale assembly and test functions and employees from the current assembly and test facility in Fukuoka to NEC Semiconductors Kyushu Yamaguchi’s production facility in Oita as well as to the facility in Kumamoto by September, 2011.
NEC Electronics also decided to close the 5-inch wafer line at NEC Semiconductors Kasai’s facility in Shiga by the end of March, 2012 to address the weak demand. Part of the production from the 5-inch wafer line at Shiga will be transferred to its 6-inch wafer line as well as to NEC Semiconductors Yamagata’s 5-inch wafer line.

Details of the new measures are as follows:

1) Realignment of assembly and test bases at NEC Semiconductors Kyushu Yamaguchi
Currently, NEC Semiconductors Kyushu Yamaguchi’s Fukuoka facility operates as an assembly and test plant for manufacturing leading-edge FCBGA (flip-chip ball grid array) packages Note 1. To accelerate the productivity advance in FCBGA package manufacturing at the Oita plant, which started as of October 2009, NEC Electronics decided to close the Fukuoka plant by September 2011, and will transfer its production volume at the Fukuoka plant into NEC Semiconductors Kyushu Yamaguchi’s assembly and test plant in Oita. NEC Electronics will also transfer majority of its QFP (quad flat packs) and other package manufacturing to its assembly and test facility in Oita plant as well as Kumamoto Nishiki plant. The buildings and the ground at Fukuoka plant are schedule to be sold.
By consolidating the company’s advanced chip package technology, the Oita plant will ramp up its capacity of FCBGA package manufacturing to a monthly production of 2.0 million units. NEC Semiconductors Kyushu Yamaguchi’s Oita plant currently manufactures microcontrollers and SoCs (QFP package products) with a monthly production of approximately 14.0 million units. In order to improve its manufacturing efficiency through scale expansion, NEC Electronics aims to expand its overall production capacity to 18.0 billion units per month during the fiscal year ending March 2012.

2) Consolidation of the 5-inch wafer line at NEC Semiconductors Kansai’s Shiga facility
NEC Electronics has two 5-inch wafer lines, and one of the lines at NEC Semiconductors Kansai’s Shiga facility will be closed by March, 2012. Some of the products that are currently manufactured at the Shiga facility will be transferred to its 6-inch wafer line as well as NEC Semiconductors Yamagata’s 5-inch wafer line in Tsuruoka, Yamagata.

NEC Electronics believes that these reforms will ultimately benefit the company’s cost competitiveness, and will implement these new changes diligently with the aim of improving the company’s business structure.
Please refer to the attachment for more information on NEC Semiconductors Kyushu Yamaguchi and NEC Semiconductors Kansai.

About NEC Electronics
NEC Electronics Corporation (TSE: 6723) specializes in semiconductor products encompassing advanced technology solutions for the high-end computing and broadband networking markets; system solutions for the mobile handset, PC peripheral, automotive and digital consumer markets; and multi-market solutions for a wide range of customer applications. NEC Electronics Corporation has subsidiaries worldwide including NEC Electronics America, Inc. and NEC Electronics (Europe) GmbH. More information about NEC Electronics worldwide can be found at

(Note 1)
Flip-Chip Ball Grid Array (FCBGA) package: The most advanced packaging method with excellent electrical characteristics. It enables two-dimensional pin layout by setting the pins directly underneath the chip. FCBGA also has finer radiation performance by allowing the heat to be released from the bottom of the chip.


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