Construction of New Miyagi Plant Postponed
Tokyo, December 12, 2008 - Tokyo Electron Limited (TEL) announced today that it has decided to postpone the construction of a new plant it had planned to build in Taiwa-cho, Miyagi Prefecture.
The original plan had called for the construction of the new Miyagi Plant to begin in April 2009 and be completed in April 2010, but with the uncertain prospects for the world economy there is a marked tendency among semiconductor manufacturers, which are TELs key customer group, to put off new capital investment. This, in turn, has led to a drop in demand for the semiconductor production equipment (SPE) that TEL supplies. Given this situation, the beginning of construction will be postponed until there is a prospect that the semiconductor and SPE markets will recover in the future. A decision on the timing of the construction will be made on the basis of market conditions in the future.
We intend to purchase land for business use at the Taiwa Research Park in Miyagi Prefecture in the spring of 2009 as scheduled.