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Infineon turns to Chinese fab

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Infineon has turned to China's SMIC (Semiconductor Manufacturing International Corp.) to help boost production for its DRAM chips.

Under the terms of the deal, Infineon will assist SMIC with the construction of a 300mm wafer fab. In exchange, SMIC has agreed to make products based on the technology exclusively for Infineon.

Infineon will see its memory output increase by more than two-fold as a result.

The agreement gives Infineon an expanded presence in the potentially lucrative Chinese market and allows them to crank out more memory without taking on fab costs.

The first memory to come out of the 300mm plant, to be located in Beijing, will ship mid-2004. ®

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