Hitachi and LSI Logic Forge Technology Alliance

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Hitachi and LSI Logic Forge Technology Alliance

Tokyo, Japan, October 12, 1999 – Hitachi, Ltd. (NYSE: HIT) and LSI Logic Corporation (NYSE: LSI) today announced a wide-ranging technology agreement that calls for joint development and exchange of 0.10-micron device architectures, copper and low K interconnect, advanced lithography, direct write E-beam and technical cooperation on embedded DRAM.

Research teams from both companies are already engaged in the U.S. and Japan in a variety of technology development activities. The first result of the alliance will be LSI Logic’s embedded DRAM solution based upon Hitachi’s process technology. LSI Logic expects to begin shipping system-on-a-chip products with embedded DRAM cores in mid-2000.

"We are excited to have the opportunity to team with system-on-a-chip leader, LSI Logic, on a variety of next generation process technologies," said Hitachi’s Kunio Hasegawa, executive vice president of Semiconductor and Integrated Circuits. "This comprehensive partnership will advance Hitachi’s and LSI Logic’s technology offerings and will be beneficial for both companies in serving their global customers."

"The strategic partnership utilizes the combined resources of two industry leaders to address the most costly and complex technology challenges associated with ever-shrinking geometries," said Joe Zelayeta, LSI Logic executive vice president of Worldwide Operations. "The culmination of this alliance will maximize returns on R&D investments of the respective companies, while assisting both of us in meeting the ongoing challenges associated with the rapidly accelerating requirements of new technology."

The two companies will contribute different technology strengths to address the issues associated with 0.10-micron designs and beyond. "Both Hitachi and LSI Logic will be able to increase their market leadership by combining their technology strengths such as Hitachi’s advanced process technology and LSI Logic’s leading logic device technology," said Masahiko Ogirima, Hitachi senior vice president of Semiconductor and Integrated Circuits. For example, this partnership combines the experience of Hitachi in copper interconnect with LSI Logic’s expertise in low K dielectric materials.

The initial offering of the comprehensive alliance will be LSI Logic’s embedded DRAM (eDRAM) product based upon Hitachi’s 0.20-micron process technology and LSI Logic’s CoreWareâ design methodology.

"The eDRAM product is specifically designed to provide a cost-effective embedded DRAM solution for customers competing in the high-growth networking, telecommunications, wireless, computer, storage and consumer markets," said John Daane, LSI Logic executive vice president of Communications, Computer and ASIC Products. "The combination of Hitachi’s embedded DRAM technology and LSI Logic’s library of intellectual property cores provides impressive offerings to customers that are building products for the rapidly growing Internet infrastructure."

Technology Alliance Overview

Joint development of advanced device architecture for 0.10-micron transistors including the performance, reliability and failure analysis techniques associated with these devices.
Development of advanced interconnects for 0.13-micron devices, including copper interconnect and low K dielectric constant insulators for competitive integrated solutions.
Development of 193 nanometer wavelength lithography, reticle technology, prototyping techniques for 0.13-micron technology and mass manufacturing.
Combined research on direct write E-beam technology.
An embedded DRAM foundry relationship in which Hitachi will manufacture wafers for LSI Logic, incorporating LSI Logic’s intellectual property libraries.

Glossary of Terms

Advanced Device Architecture – Design and implementation of advanced transistors used in the production of silicon chips.
Advanced Lithography – Techniques used to define (draw) the transistors and other structures onto silicon chip.
Copper Interconnect – The metal used to connect millions of transistors on a silicon chip.
Direct write E-beam – The utilization of a focused beam of electrons to draw an electronic circuit with lines less than one-thousandth of a millimeter wide directly onto a silicon wafer.
Embedded DRAM – Blocks of Dynamic Random Access Memory (DRAM) embedded into a system-on-a-chip device. Traditionally, DRAMs have been separate components.
Low K Dielectric – The "quality" of the material insulating the metal interconnect. Low K has a significant impact on a manufacturer’s ability to produce high performance and high density system-on-a-chip solutions.
Reticle Technology – A mask used to define the millions of structures on a silicon chip.

About Hitachi, Ltd.

Hitachi, Ltd., headquartered in Tokyo, Japan, is one of the world’s leading global electronics companies, with fiscal 1998 (ended March 31, 1999) consolidated sales of 7,977 billion yen ($65.9 billion*). The company manufactures and markets a wide range of products, including computers, semiconductors, consumer products and power and industrial equipment. For more information on Hitachi, Ltd., please visit Hitachi’s website at http://www.hitachi.co.jp.
* At an exchange rate of 121 yen to the dollar.

About LSI Logic

LSI Logic (NYSE:LSI), The System on a Chip Companyâ , is a leading supplier of custom high-performance semiconductors, with operations worldwide. The company enables customers to build complete systems on a single chip with its CoreWare^® design program, which increases performance, lowers system costs and accelerates time to market. LSI Logic develops application-optimized products in partnership with trendsetting customers, and operates leading-edge manufacturing facilities to produce submicron geometry chips. The company maintains a high level of quality as demonstrated by its ISO 9002 certifications. LSI Logic Corporation is headquartered at 1551 McCarthy Boulevard, Milpitas, California 95035.

Notes to Editor:

The LSI Logic logo design and CoreWare and The System on a Chip Company are registered trademarks of LSI Logic Corporation.

All other brand or product names may be trademarks or registered trademarks of their respective companies.

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