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Japan Electronics Giants Look to Reclaim Lead in Worldwide Microchip Market

Hitachi, Toshiba, and Renesas are coming together to establish the planning company Advanced Process Semiconductor Foundry Planning Co. Ltd. The company will be capitalized at close to $1 million US and will be set up this month. The Japanese chip makers are looking to give competition to Taiwanese chip makers, which have been dominating the global chip market for more than a decade. The companies are also pooling their resources because of the rising costs of chip development and the growing demand for advanced technologies use in intricate circuitry. The planning company will reach a decision by the summer of 2006 on the feasibility of a foundry that would make system chips with 65nm or smaller circuitry widths.

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