Press Release


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January 11, 2001



Sony to Establish Semiconductor Fabrication Platform Company
"Sony Semiconductor Kyushu Corporation"



(Tokyo, Japan) On April 1 2001, Sony Corporation will integrate three domestic semiconductor fabrication plants in the Kyushu region* (Sony Kokubu, Sony Oita, Sony Nagasaki) into a new company called "Sony Semiconductor Kyushu Corporation". This is part of Sony's ongoing effort to realize the EMCS (Engineering, Manufacturing and Customer Services) concept in the field of semiconductor fabrication. The EMCS concept entails a fundamental reform of the existing system to establish a common product design and mass production platform that maximizes efficiency and quality to allow a flexible and speedy response to the rapidly changing business environment.
*Kumamoto plant (under construction) will also be included.

The new company will move to integrate the entire process of semiconductor fabrication - raw materials procurement, production planning, mass production, quality control, inventory control and logistics - to establish an agile and efficient operation that is flexible to market demand. Moreover, it will develop and design a selection of new semiconductor products and offer Customer Service functions in order to create a seamless operation from design to final product delivery.

The new company will also oversee Sony group's entire semiconductor operations by horizontally managing Sony Computer Entertainment Fab1/2 (Nagasaki) and Sony's overseas semiconductor plants in Thailand and the US (San Antonio).

The importance of semiconductors as devices which determine the key functions and competitiveness of electronic products will continue to increase. In light of this, Sony has been taking measures to strengthen its semiconductor business through efforts such as the establishment of an internal Network Company called Semiconductor Network Company (SNC) in August. With the establishment of Sony Semiconductor Kyushu Corporation and the entailing fabrication process renovations, Sony will move forward to strengthen its overall semiconductor business for the coming era.



Outline of the New Company:
Name: Sony Semiconductor Kyushu Corporation
Activation Date: April 1, 2001
Representative: Nobuhiro Hamasaki
Location: Fukuoka Prefecture
Capital: 24.2 billion yen (wholly owned by Sony Corp.)
Sales Revenue: 250 billion yen (based on total sales forecast of the three plants in FY2000)
No. of Employees: Approx. 5050
Fabrication Plants: Kokubu, Oita, Nagasaki, Kumamoto
(under construction)
Business Description: Development, Design, Fabrication and Customer Service of Semiconductors
Products: Bipolar IC, MMIC, MOS IC, CCD, LCD, etc.




Outline of the Three Existing Plants
Sony Kokubu Corporation
Activation Date: August 1, 1973
Representative: Nobuhiro Hamasaki
Location: Kagoshima Prefecture
Capital: 21 billion yen (wholly owned by Sony Corp.)
No. of Employees: Approx. 2790
Products: Bipolar IC, MMIC, MOS IC, CCD, LCD, etc.
Sony Oita Corporation
Activation Date: May 14, 1984
Representative: Yoji Yoshii
Location: Oita Prefecture
Capital: 200 million yen (wholly owned by Sony Corp.)
No. of Employees: Approx. 640
Products: MOS IC, etc.
Sony Nagasaki Corporation
Activation Date: December 4, 1987
Representative: Nobuhiro Hamasaki
Location: Nagasaki Prefecture
Capital: 3 billion yen (wholly owned by Sony Corp.)
No. of Employees: Approx. 1620
Products: MOS IC, etc.