Fujitsu to spend $1 bln to build new chip plant

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apanese electronics conglomerate Fujitsu Ltd. said on Wednesday it would spend 120 billion yen ($1.05 billion) to build a new microchip plant at its manufacturing complex in Japan to meet growing demand. Sales must be doing real good to drop one billion dollars!

The new plant, located in central Japan’s Mie prefecture and set to start output in April 2007, will process 300-mm wafers to make system chips with a circuitry width of 65 nanometers. The large wafers can yield more than twice as many chips as the standard 200-mm variety, helping chip makers slash production costs and offer competitively priced products. Finer circuitry decreases the size of a chip and cuts output cost. It also helps chips process data faster. Most of the world’s advanced chip factories currently use 90-nanometre technology. A nanometer is a billionth of a meter.

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