Shanghai Hua Hong NEC Electronics Co., Ltd. is a high-tech enterprise with the largest amount of investment in Chinese electronics industry up to now and state of the art in the VLSI manufacture. It is jointly invested by Shanghai Hua Hong Group and NEC Corp. The term of joint venture is 20 years. Registered capital is US$ 700 million, among which, HH invests US$ 500 million, having 71.4% of shares, NEC invests US$ 200 million, having 28.6% of shares. Total amount of investment is US$ 1.2 billion. HHNEC was founded on July 7th, 1997 and its main business scope covers design, development, manufacture and sales of VLSI. The company is located on Pudong, Shanghai. The total ground area reaches 210,000 square meters, with 79,900 square meters buildings area and 12,650 square meters of clean room within fabrication building.

After one and a half years of preparation and construction, the company had started production smoothly at Feb, 1999, 7 months ahead of schedule. Now its main products are 64M SDRAM (synchronous dynamic random access memory) and logical IC. The products serve as memory and logic IC used in IC cards, communication, computer, and consumable electronic devices. SDRAM has its speed up to 144Mhz, synchronous to clock; one chip contains 134 million cells, which can store the entire words of the two volumes of Chinese famous novel. Thus this kind of products have characteristic of large capacity, high speed of data transfer, being widely used as main memory of PCs and workstations.

The production now goes well and stably with high quality ratio. The monthly yield has reached over 5000 pieces of 8" wafer ahead of schedule. The monthly yield has been up to 10,000 pieces of wafer by the end of 1999. By adding processing equipment now, the company will set up a production line for 8 inches wafer using 0.35μm processing technology with monthly yield of 20,000 by the end of 2000, ahead of schedule.