Sumitomo Electric Selects Oregon for Company's First U.S. Semiconductor Wafer Manufacturing Facility; New U.S. Headquarters
Source: Sumitomo Electric
Oregon Silicon Forest Site will Manufacture GaAs Wafers for the Wireless Communications Market
HILLSBORO, OR. Sumitomo Electric Industries, Ltd. of Japan today announced its plans for the construction of its first U.S. factory to produce compound semiconductor materials in Hillsboro, Oregon.
Production at the new facility will initially focus on 150 mm GaAs (Gallium Arsenide) wafers used in wireless communication devices such as mobile phone handsets. A second phase expansion into the production of large diameter Indium Phosphide wafers is also planned.
The Hillsboro manufacturing facility will produce semiconductor wafers based on the GaAs compound enabling the high-speed operations needed in wireless communication devices. A typical mobile phone handset can contain six or seven GaAs chips, providing the high speed switching devices, the power and the low noise amplifier functions.
Sumitomo estimates that the current worldwide market for mobile phone handsets is 400 million produced in 2000, growing to 600 million in 2001.
Construction on the Oregon site is scheduled to begin in November 2000 and the facility is projected to be in test production by August and in full production by the end of 2001. The facility is expected to provide 150 new jobs for the local economy as it expands over the next three years. The total investment for the first phase of the project will be $20 million, with the potential for an additional $70 million expansion as demand in wireless markets continues escalates.
"There is a strong increase in demand for our products in the wireless communications industry, and the need to move quickly was a key factor in making this investment," said Dr. Kenichi Yoshida, managing director, Sumitomo Electric. "The `Silicon Forest has excellent infrastructure for semiconductor manufacturing, including highly reliable utilities, a well-educated work force, and proximity to key sources of supply. In addition to being an excellent manufacturing location, we believe the greater Portland area will provide an excellent quality of life for our employees. We have been very pleased with the support that we have received at all levels of government including the City of Hillsboro, the Portland Development Commission, the State of Oregon and the State s Tokyo office."
Sumitomo Electric has been manufacturing compound semiconductor materials in its Itami and Osaka, Japan facilities for more than 30 years. Sumitomo Electric Industries is a diversified manufacturer with sales of over $13 billion in 1999. The Hillsboro facility will be part of Sumitomo Electric s Semiconductor Division, a world leader in the production of compound semiconductor materials. The division has sales offices in New York and San Francisco, but this will be its first production facility in the United States and will serve as the company s U.S. headquarters. Sumitomo Electric is also constructing production facilities in Yokohama and Kobe, Japan and Taiwan.
Contact: Sumitomo Electric U.S.A., Inc. Mr. Mikio Morioka Tel: 212/317-7208 or KVO Public Relations Lisa Wood Tel: 503/221-2361 lisa_wood@kvo.com
Sumitomo Electric U.S.A., Inc.Mr. Mikio Morioka
Tel: 212/317-7208
or
KVO Public Relations
Lisa Wood
Tel: 503/221-2361
lisa_wood@kvo.com
E-mail: lisa_wood@kvo.com
