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Joint Venture For Optical Communication

Infineon Technologies and United Epitaxy (UEC) of Taiwan are to set up a joint venture for the manufacturing and development of fibre optic components. The joint venture will be based within the existing facility of UEC at the Hsinchu Science-based Industrial Park in Taiwan. The new company will be established in October 2003.
Infineon Technologies and United Epitaxy (UEC) of Taiwan are to set up a joint venture for the manufacturing and development of fibre optic components. The joint venture will be based within the existing facility of UEC at the Hsinchu Science-based Industrial Park in Taiwan. The new company will be established in October 2003.


Subject to approval by the German government, Infineon will hold 56% of the shares of the joint venture and UEC the remainder. The total planned investment over the next five years amounts to $ 12mn. The money will be used for business start-up, manufacturing site, equipment and other infrastructure. The investment quantity will pro rata according to the shareholding ratio of the parent companies.


The joint venture will employ 120 people when operating at a full capacity of up to 100 wafer starts per week.


The new company will integrate the fibre optics technology of the two parents. Both companies will license technology to the joint venture. In return, the new company will manufacture optochips for Infineon and UEC. Both partners will assemble the optochips into high-end micro systems and components for the market of high-speed data transmission products based on fibre optics.


Cleanroom and major equipment installation is expected to finish in Q4 2003. Trial production is due Q1 2004 and mass production Q4 2004.

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