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Infineon and UEC in opto components tie-up

Infineon Technologies has signed an agreement with Taiwanese epiwafer and device manufacturer United Epitaxy Company (UEC) to set up a joint venture that will manufacture and develop optoelectronic chips for use in the fiber-optics market.
The joint venture will be based within the existing facility of UEC at Hsinchu Science-based Industrial Park in Taiwan and will be established in October 2003. Mass production is expected to commence by the fourth quarter of 2004.

Infineon will hold 56 percent of the shares of the joint venture, with UEC holding the remaining 44 percent.

The two companies will invest a total of around $12 million in the business, with each company making an investment in proportion to its shareholding.

When operating at its full capacity of up to 100 wafer starts per week, the joint venture will employ around 120 people.

The new company will integrate technology relating to fiber-optic components from Infineon and UEC. Both companies will license their respective technology to the joint venture.

The new company will manufacture optoelectronic chips for Infineon and UEC. Both partners will assemble and package the optoelectronic devices into components and modules for the telecommunication and data communication markets.

“This joint venture is further recognition of Taiwan’s role in the global IT industry,” said Loh Kin Wah, president of Infineon Technologies Asia Pacific Pte Ltd. “It will ensure sufficient supply and develop the most competitive fiber-optics products for Infineon and UEC.”

”The JV supports the Taiwan government’s policies for industry upgrading, bringing in the world’s cutting-edge optical communications technology,” said Kuo-Hsin Huang, chairman of UEC.

“The cooperation with Infineon is also expected to enhance R&D and manufacturing capability at the new company because of Infineon’s global leadership in the fiber optics communications field and UEC’s prowess of manufacturing.”

Infineon manufactures a wide range of fiber-optic components, including lasers, receivers, VCSELs, transceivers and parallel optical links.

UEC claims to have the world’s largest MOVPE manufacturing operation. Its products include conventional and high-speed infrared LEDs; ultra-bright AlGaInP and InGaN LEDs, laser diodes, silicon detectors, and HBT epiwafers.

UEC has two manufacturing sites at the Hsinchu Science-based Industrial Park, further sites in Taiwan at the Tainan Science-based Industrial Park and in Chung-ho, Taipei County, as well as a wholly-owned subsidiary in Wuxi, Jiangsu province, China.

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