JBIC Provides Buyers Credit for the 1st Silicon in Malaysia --Credit to boost Malaysia's IT Industry--
1. Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Yasuda) signed today a loan agreement totaling $59.5 million with 1st Silicon, a Malaysian corporation, for the country's first IT fabrication wafer plant for semiconductors. The loan is cofinanced with the Bank of Tokyo-Mitsubishi, Fuji Bank and Standard Chartered Bank (Tokyo branch), with JBIC assuming a 60% share of the total, or $35.7 million. Bumiptra-Commerce Bank Berhad, a Malaysian commercial bank, is providing a guarantee for the loan.
2. The proceeds of the loan will be used to purchase materials and equipment from a Japanese exporter, Kanematsu Corp., by 1st Silicon in Kuching, Sarawak, to build a wafer fabrication plant for semiconductors. It will produce 20,000 to 30,000 CMOS (complementary metal oxide semiconductor) logic chips (integrated circuits1 etched in a silicon wafer2 ) per month. This plant is the first wafer fabrication plant in Malaysia, and the CMOS logic chips to be produced will be used for DSP (digital signal processing) and flush memory chips/components in mobile phones. It will become one of the key plants in the Malaysian IT industry.
3. The plant will be constructed under "Vision 2020", an initiative by which the Malaysian government aims to create a "fully-developed society" and "knowledge-rich society". Therefore, governmental support is expected, including designation of the project as eligible for favorable tax treatment. The Sarawak state government has also been actively involved in this project by in making an equity investment in 1st Silicon as part of its policy to attract capital-intensive industries that will lead to large-scale investments.
4. This loan will contribute to the exports of Japanese materials and equipment to Malaysia, and at the same time serve to boost the IT industry in Malaysia, thereby providing significant support for the country's efforts to promote economic development.
5. This loan constitutes part of "Japan's Comprehensive Co-operation Package to Address the International Digital Divide," which was announced by the Government of Japan prior to the Kyusyu-Okinawa Summit in July. Under this program it is Japan's intention to provide official cooperation amounting to about $15 billion over the next five years.
1. A combination of various kinds of semiconductor devises etched in the silicon wafer and connected by aluminum wirings that amplify, retain electronic signals and conduct other prescribed operations.(back)