The joint venture will use production lines at an IBM Japan Ltd plant in Yasu, Shiga prefecture, the companies said in a joint release. The plant will also have a new facility capable of etching a line width of 0.13 micron on 300-milimeter silicon wafers, and eventually 0.1 micron.
Armonk, New York-based IBM and privately held Seiko Epson, which makes chips and flat-panel displays used in mobile phones and other portable devices, will work out details by the end of June, when they plan to sign a formal accord, the release said. Details may include the size of the investment in the plant.
The biggest computer maker is boosting sales of specialized chips for mobile devices and moving to bring wireless capability to all of its notebook computers, handheld organizers and server computers. The effort, begun last year, is expected to be completed by the end of this year.
IBM shares yesterday fell 0.5 percent to US$117.40. Seiko Epson, an affiliate of watch-making Seiko Corp, plans to sell shares to the public during this fiscal year ending March 2002.
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