We have invested in the compound semi-conductor manufacturer -Giga Epitaxy Technology Corp. (hereunder written as GET) in the Taiwan region, and by mutual consent, have signed an agreement , to provide manufacturing technology related to our Gallium Arsenide compound semi-conductor epitaxial wafer.

In recent years, in the midst of the explosive proliferation of wireless communication using mobile phones and mobile personal computers etc., the demand for compound semi-conductor material, especially Gallium Arsenide -used in these receiving/transmitting devices -has been rapidly increasing. Up to now, we have manufactured Gallium Arsenide compound semi-conductors only at our Takasago Works in Hitachi City, Ibaragi Prefecture, Japan. However, as we are the top global maker of this product, there has become a pressing need for us to establish an overseas manufacturing base for the following reasons: 1) In order to answer demands for on the spot production from overseas customers and 2) By establishing more than one manufacturing base, we avoid the risk of having to stop supplying the product in the event of a natural disaster or some such other problem.
So, because of these reasons, we have made GET Corp. a subsidiary (as an OEM company) in semi-conductor demand and by offering our technological know-how, getting mass production up and running and training engineers should be realized in a short time. For the time being, the plan is for us to supply GET Corp. with Gallium Arsenide semi-conductor substrates with them manufacturing the epitaxial wafers. We will also for the time being be in charge of sales and the supplying of overseas customers.

GET Corp. was established in May 2000 and construction of the factory in Chu-Pei City began in September 2000. After completion of the site (total floor area: approx. 10,000m²) in April 2001, equipment will be installed and made ready and in the 3rd quarter of 2001 they hope to start mass producing 6 inch diameter Gallium Arsenide epitaxial wafers, using the MOVPE (*1) method.
Regarding mass production, we forecast: 12,000 pieces will be manufactured in 2001 per 6 months and in 5 years time-120,000 pieces per year.

*1	MOVPE: Metal Organic Vapor Phase Epitaxy.

1. Company name	Giga Epitaxy Technology Corp.
2. Location	5F, No.8, Lane 32, Hsien Cheng 5 St., Chu-Pei City, Hsin Chu Hsien, Taiwan
3. Amount of capital	(After Hitachi Cable Ltd. investment) 1 billion Taiwan$ (approx. 3.3 billion Yen)
4. Investment ratios	HCL: 51%, Optotech Corp 5%, Others : 44%
5. Establishment date	May-2000
6. HCL investment term	Within 2000
7. Representative bodies	Chairman Mr. Billy T. S. Wu President Mr. Hiroto Kawagoe
8. Number of employees	approx. 80 (forecast for fiscal year 2002)
9. Total Sales	approx. 4 billion Yen (forecast for fiscal year 2002)