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Press Releases

January 29, 2001

Overseas Economic Cooperation Operation

-to Build a Semiconductor Plant for Diffusion Process-

  • 1. Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Yasuda) signed today a loan agreement totaling approximately 5 billion yen with Silterra Malaysia Sdn. Bhd., a Malaysian corporation, to finance construction of a semiconductor plant for the diffusion process. The loan is cofinanced with the Bank of Tokyo-Mitsubishi and Citibank, NA (Tokyo branch), with JBIC assuming a 60% share of the total, or 3 billion yen. The Government of Malaysia is providing a guarantee for the loan.
  • 2. Under this project, Silterra (founded in 1995) in Kulim city, Kedah, 250 kilometers northwest of Kuala Lumpur, will build a semiconductor plant for the diffusion process production 30,000 units of system LSI per month.1 The proceeds of the loan will be used for semiconductor production facilities provided by exporter Mitsubishi Corp. and manufacturers Tokyo Electron and DAINIPPON SCREEN MFG.
  • 3. The Government of Malaysia has launched "Vision 2020", an initiative aimed at joining the advanced countries by 2020 by achieving a "fully-developed society" and "knowledge-rich society." Under this policy, the Government is strongly encouraging investment in the information and telecommunications sectors. It has unveiled the "Multimedia Super Corridor (MSC) Project",2 to develop telecommunications infrastructure and attract and foster IT-related firms. It is under these circumstances that this project is being undertaken by Silterra, whose equity is held by Khazanah Nasional Berhad, an investment firm wholly owned by the Government of Malaysia and chaired by Prime Minister Dato' Seri Dr Mahathir Mohamad. This government-led effort to build a new semiconductor plant for the diffusion process will contribute to the successful realization of Vision 2020.
  • 4.This loan will cover the export of semiconductor production facilities to Malaysia and, at the same time, serve to invigorate 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 Cooperation Package to Address the International Digital Divide," which was announced by the Japanese Government prior to the Kyushu-Okinawa Summit in July 2000. Under this program, it is Japan's intention to provide official cooperation funds amounting to about $15 billion over the next five years.
  • 1.A system LSI is a highly concentrated LSI that contains CPU and memory, both of which are in themselves LSIs, or integrated circuits made up of 1,000 to 100,000 transistors. (back).(back)
  • 2.The MSC Project was initiated by Prime Minister Dato' Seri Dr Mahathir Mohamad in August 1995. It consists of providing advanced hard infrastructure such as fiber-optic cable networks as well as developing soft infrastructure such as taxation and legal frameworks in the designated area, which includes Kuala Lumpur, and extends 15 kilometers east to west and 50 kilometers north to south from the capital. It aims to develop the region as the focal point of multimedia by attracting world-class telecommunications firms. Specifically it consists of seven flagship projects: 1) electronic government; 2) multi-purpose card; 3) distance education; 4) telemedicine; 5) concentration of R&D in the area; 6) networks in support of the manufacturing industry; and 7) borderless marketing.(back)


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