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Spansion to Invest $1.2B in Japan Fab

By Jessica Davis -- EDN, June 16, 2006

Spansion confirmed plans that it expects to invest $1.2 billion over three years in the SP-1 wafer fab in Aizu in the Fukushima presecture area of Japan.

The memory chip company plans to begin production of 45-nanometer devices at the facility by mid-2008, a spokeswoman at the company said. Spansion may also use the facility to manufacture 65nm devices.

Spansion said it is still finalizing the details of the fab investment and will announce details at a later date.

Spansion has said that it expects to begin 65nm manufacturing later this year in one of its Austin fabs.

The Spansion spokeswoman said that the SP-1 facility will be able to produce 15,000 to 20,000 300mm wafers per month.

The company plans to invest $1.2 billion spread over a three year period from 2006 through 2008.  The investment funds will come from cash on hand, borrowing, and the leasing of equipment.

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