IBM, NTK Ink Deal to Increase Ceramic Substrate Supply

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EAST FISHKILL, NEW YORK & AICHI, JAPA - 13 Nov 2000: ... IBM and NTK Technical Ceramics, a division of NGK Spark Plug Co., LTD., today announced a multi-year agreement in which NTK will supply IBM with added capacity for the production of ceramic substrate chip carriers.

Together with internal capacity expansions previously announced by IBM, the agreement is expected to more than triple IBM's supply of the packaging substrate by mid-2001. Terms of the agreement were not disclosed.

"IBM has seen an unprecedented increase in demand for its leading edge ceramic substrate packaging technologies," said John Acocella, general manager of interconnect products, IBM Microelectronics Division. "We are driving productivity improvements and capacity expansion at our existing facilities. Now, with additional support from NTK, we're working to further maximize our ceramic substrate production to meet our customers' needs."

Under the agreement, NTK will manufacture ceramic chip carriers fabricated with alumina dielectric insulation and metallic conductors. These chip carriers are primarily used in high performance applications like networking gear and Web servers that require high I/O density, uniform chip power distribution, improved cooling capability, and high reliability.

"NTK is ramping up ceramic packaging capacity for IBM immediately, using existing facilities," said Seiji Haga, executive worldwide vice president, NTK/NGK. "In addition, we began construction on a new manufacturing facility in August that is expected to begin production early in the second quarter of 2001. Together with IBM, NTK is committed to providing the high-performance chip packaging solutions needed to support the growth of the e-business environment."

The agreement between IBM and NTK supplements the significant investments made this year by IBM to increase internal capacity for its packaging products. Investments have been made at its existing East Fishkill and Endicott, NY and Yasu, Japan facilities, as well as a proposed new $300 million organic packaging manufacturing facility in Shanghai, China.

IBM's advanced packaging technologies have been used to build some of the highest density electronic components in the industry. Advances in IBM's ceramic packaging technology have led to increased packaging density, data bandwidths and operating frequencies while reducing system-level noise.

IBM is one of the industry's foremost suppliers of interconnect products and services, enabling a full spectrum of applications through packaged semiconductors to fully tested electronic assemblies. IBM semiconductor packaging products are designed to support very high-frequency, high-bandwidth requirements being driven by the Internet while providing unmatched performance and dependability.

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