Date: 21/01/2007

Renesas and Powerchip agree for a joint venture to design memory devices

A new joint venture company called "Vantel Company Limited" will be launched by Renesas and Powerchip to exclusively design memory products in Feb 2007. The Renesas long known technology capabilities will be leveraged by the production and quick turnaround capabilities of Powerchip. Renesas is a Japanese based semiconductor manufacturer which is formed few years back after merging Mitsubishi and Hitachi semicondutor divisions. Powerchip is a leading producer of DRAM, and Flash memory chips based in Taiwan.

The joint venture is aimed at providing System In Package (SIP) solutions for growing consumer and communications market.

In this new venture, 65% of the total investment will be from powerchip and the rest 35% by Renesas. The company will be head quartered in Japan.