January 23, 1998
Fujitsu Limited
Sony Corporation

This cooperation comes at a time when changes within the semiconductor industry such as increased research and development costs, expanded capital investment requirements, and enlargements in semiconductor chip scale have made it increasingly difficult for companies to pursue technological innovations alone.

Fujitsu and Sony expect improved design efficiency and shortened product development times to result from cooperation in the development, design, and manufacture of next generation system LSI chips. They also anticipate that their cooperation will help establish a strong business position for the new technology.

Basic Framework of Cooperation:

1.

Fujitsu will provide Sony with 0.18mm logic process technology for LSIs; the two companies will jointly develop 0.18mm process technology for chips integrating logic with embedded DRAM.

2.

The companies will set up a unified production line for the manufacture of system LSI chips using 0.18mm process technology at a Fujitsu factory in Mie Prefecture. Production is planned to begin in Fall 1999.

3.

The companies will establish a cooperative environment for the design of 0.18mm generation circuits; they will also share a basic cell library.

4.

The companies are considering further cooperation in developing 0.13mm logic process technology.