Toshiba and IBM to Set Up U.S. Manufacturing Joint Venture for
Next-Generation Semiconductor Memory Products

MANASSAS, VA., and TOKYO, August 8, 1995 . . . Toshiba Corporation and IBM
announced plans today to establish a U.S. joint venture for manufacturing
dynamic random access memory (DRAM) chips, beginning with 64 Megabit (Mb)
DRAMs. A single 64 Mb DRAM can store the equivalent of more than 6,000
pages of typewritten text. These semiconductor products are used in
computers, multimedia products and a wide variety of other
information-processing equipment.

The project calls for an initial investment of more than US $1.2 billion
over three years and includes the construction and joint operation of a
wafer fabrication plant to be built in Manassas, Va., on property owned by
IBM.

"Today's announcement is an important part of IBM's plans to further
enhance its position as a major producer of leading-edge semiconductor
products," said Dr. Michael J. Attardo, general manager, IBM
Microelectronics Division. "We are striving to meet current and future
demands of our merchant and internal customers. And we are pleased to be
able to share this major manufacturing effort with a leading technology
company such as Toshiba."

Masanobu Ohyama, executive vice president of Toshiba Corporation said, "We
are delighted to be further extending our partnership with IBM. The new
joint venture brings together the capabilities of two leading
manufacturers with world-class semiconductor technologies. I also believe
the project can make a positive contribution to the progress in
cooperation between the United States and Japan."

The plant will include an advanced clean room for fabricating semiconductor
products using 8-inch wafers and 0.35 micron lithography and below. A
wafer is a round slice of silicon that can be cut into dozens of chips,
each containing millions of tiny electronic devices. Chips perform useful
tasks, such as data storage and math computation. Construction of the
fabrication plant is expected to be completed by January 1997, with
qualified production by the fourth quarter of 1997. Marketing of the
finished products will be conducted independently by the two companies.

When it reaches full operation, the total capacity of the plant will exceed
1,000 wafer starts per day, which will be shared equally by the two
companies. Total employment is expected to exceed 1,200. The site master
plan allows for future expansion of up to two additional wafer fabrication
facilities which, if fully developed, could employ up to 4,000 people.

"Virginia welcomes and is honored by this major investment by two
internationally respected companies with the stature of IBM and Toshiba,"
said Virginia Governor George Allen. "It is a signal that Virginia's
capable and highly skilled work force and pro-business environment are
significant assets successful companies seek in today's competitive
market."

The new joint venture will allow Toshiba to enhance its commitment and
service to the U.S. market and also to strengthen its cost competitiveness
against the U.S. dollar. It helps IBM meet the continuing strong demand
for high-quality semiconductor products.

This is the second phase of IBM's semiconductor capital expansion plans.
Earlier this year IBM announced that it will invest up to $1 billion in
capital expansion of existing semiconductor facilities.

According to the Worldwide Semiconductor Trade Statistics (WSTS)
organization, worldwide demand for DRAMs is expected to continue its
strong growth, with production of 64 Mb chips, as measured in bits,
projected to surpass 16 Mb output by 1998.

Subject to final contract, the venture is expected to be established by the
end of 1995. It will be jointly owned and operated by IBM and Toshiba
America Electronic Components, Toshiba's U.S. subsidiary for
manufacturing, marketing and sales of electronic components.

This new company will be the second major manufacturing joint venture
between IBM and Toshiba. Toshiba Corporation and IBM Japan have a
joint-production facility of large-sized color active matrix thin film
transistor liquid-crystal displays in Himeji and Yasu, Japan.
 
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