Hong Kong and Santa Clara, CA – August 15, 2002 – National Semiconductor Corporation (NYSE:NSM) today signed a memorandum of understanding (MOU) with the Suzhou Industrial Park Administrative Committee to lease 36 acres of land for a state-of-the-art assembly and test plant in China's Suzhou Industrial Park. Construction of the new integrated circuit (IC) manufacturing facility in east China's Jiangsu Province is expected to begin in November of 2002. The facility is expected to be up and operational, with around 500 employees, in 2004. As part of this major expansion into China, National Semiconductor expects to invest up to $200 million for construction, equipment, facilities and personnel during the next five years.
China represents one of the largest global growth opportunities for National Semiconductor as the company continues to strengthen its market leadership in analog power management, mixed-signal and wireless. According to the Chinese Semiconductor Industry Association, China’s semiconductor market is expected to reach 30.2 billion units this year and 33.4 billion units by 2003. At the same time, China is quickly emerging as a world-class manufacturing base because of its population, available infrastructure, and skilled workforce.
“National Semiconductor recognizes the importance of China’s role in the global electronics industry. Working closely with local officials, we intend to provide world-class services to our Chinese customers,” said Brian L. Halla, chairman, president and CEO of National Semiconductor. “With this new assembly and test facility in Suzhou Industrial Park, National Semiconductor will be able to provide complete technology solutions quickly and efficiently to our expanding list of customers.”
“We are extremely delighted that National Semiconductor has chosen to work with the Suzhou Industrial Park for their first-ever assembly plant in China,” said Wang Jinhua, Vice Mayor of Suzhou Municipal Government and Chairman of Suzhou Industrial Park Administrative Committee. “This decision by such a world-renowned semiconductor company is a testament to the advantages of the Industrial Park management, availability of human resources, attractive environment and good logistics support. We look forward to helping National develop its business here for the benefit of the industry and the country.”
Suzhou Industrial Park, located about 80 kilometers west of Shanghai, is well equipped with new highways and communication infrastructure. The Park is a joint development project between China and Singapore. The official developer of the park, China-Singapore Suzhou Industrial Park Development Co. Ltd., is 65 percent owned by the Chinese consortium and 35 percent by the Singapore consortium.
“National is committed to providing the best and most cost-effective manufacturing solutions for our customers,” said Kamal Aggarwal, Executive Vice President, Central Manufacturing and Technology Group, National Semiconductor. “As our market in China grows rapidly, there is an increasing need to package and test products closer to our customers. The ample engineering talents in China also favor National’s future plans to develop products and packaging technologies.”
About National Semiconductor
National Semiconductor is the premier analog company driving the information age. Combining real-world analog and state-of-the-art digital technology, the company is focused on the fast growing markets for wireless handsets; displays; information infrastructure, and information appliances. Headquartered in Santa Clara, California, National reported sales of $1.5 billion for the 2002 fiscal year and employs about 10,000 employees worldwide. Additional company and product information is available at www.national.com.
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