1999-12-06 , SSC-9911
Business News From Philips Semiconductors

Philips Semiconductors, a division of Royal Philips Electronics (NYSE: PHG), announced the completion of a 200 million Euros expansion (approximately US$ 200 million) to its Albuquerque manufacturing operations. A new semiconductor manufacturing line has been added that will increase production capability by 50,000 eight-inch wafers per year. The line begins production now and expands in 2000. The new manufacturing line will produce chips aimed at serving our customers in the fast-growing markets in communication, particularly in cellular phone and paging.

"Philips Semiconductors continues to invest in its manufacturing capabilities on a worldwide basis at a time when there is high demand for increased capacity for semiconductor production," said Stuart McIntosh, Chief Operations Officer, Philips Semiconductors. "Last week, Philips Semiconductors announced an expansion of Europe's largest semiconductor manufacturing complex in Nijmegen, The Netherlands, and I am very pleased to make this announcement here in Albuquerque. We are truly a global organization and our commitment to expanding capacity and enhancing our US operations is reflected in this announcement."

"The expansion of Philips Semiconductors' manufacturing capability is the result of a cooperative working relationship with the City of Albuquerque, which helped to make this privately financed three-year project a reality," said Heinz Rebmann, Vice President and General Manager of Philips Semiconductors operations in Albuquerque. "The new manufacturing line uses 0.25 micron technology, which is state-of-the-art semiconductor technology used for mobile phones and other applications. The current expansion increases production significantly, especially because, for the first time, an eight-inch line is being introduced, which enables more chips to be produced on bigger wafers."

In Albuquerque, Philips Semiconductors designs, develops, manufactures and tests semiconductors used globally. The new eight-inch manufacturing line will have a capability of 50,000 wafers per year using the advanced Philips BiCMOS processes known as QUBiC. The current six-inch manufacturing line has a capability of 260,000 wafers per year. As a result of improved efficiencies and a higher degree of automation, the new line is not expected to require the creation of additional positions. Philips Semiconductors currently employs approximately 900 people at the Albuquerque facility. Albuquerque is one of four key locations in the US for Philips Semiconductors, including Silicon Valley; San Antonio, Texas; and Tempe, Arizona.

Philips Semiconductors is the eighth largest semiconductor supplier in the world according to Dataquest's 1998 market share report. Philips Semiconductors' innovations in digital audio, video and mobile technology place the company in a leadership position in the consumer, multimedia and wireless communications markets. As a global company, offices in 40 countries serve major markets. Philips Semiconductors, headquartered in Eindhoven, The Netherlands, is a division of Royal Philips Electronics. Please join us at the Philips Semiconductors website:  www.semiconductors.philips.com for further information.