January 29, 1998 (TOKYO) -- Fujitsu Ltd. and Sony Corp. said they reached a basic agreement to jointly develop and manufacture next-generation system ICs.

They stressed that their cooperation will cover both design and production of system ICs. In the manufacturing sector, Fujitsu will provide Sony with 0.18-micron logic IC process technology. And they will jointly develop technology for microchips integrating logic circuits with embedded DRAMs.

The planned production line will be built at Fujitsu's plant in Mie and is slated to start operating from l999. Investments in equipment will be shared by the two companies, but the total amount and the ratio are yet to be determined.

Fujitsu and Sony reportedly plan to create a design environment based on their existing resources, and they will share cell libraries.

The planned cooperation will benefit Fujitsu because it will be able to slash investments. Moreover, Fujitsu can firm up its intellectual property (IP) concept because Sony will join forces as a leading user company. Sony will utilize Fujitsu's logic IC technology accruing from the cooperation.

A recent report said that Sony would dissolve its technical cooperation in logic circuits with embedded DRAMs with Oki Electric Industry Co., Ltd. On the matter of that report, a Sony spokesman said, "Sony completed the development of 0.25-micron design rule technology with Oki, under terms of our contract with Oki."

An English news release is available at: http://www.fujitsu.co.jp/hypertext/news/1998/Jan/23-e.html

(Nikkei Microdevices)