October 29, 2003 - Kobelco LSI Design to merge into Genesis Technology


Kobe Steel, its subsidiary Kobelco LSI Design, Inc. (KLDI), and affiliate Genesis Technology Inc. (GTI) have agreed to transfer KLDI's business to GTI on April 1, 2004. GTI will continue KLDI's business as well as its own. Through this consolidation, GTI will be able to offer a unique combination of LSI design, assembly and testing services to meet the outsourcing needs of the semiconductor industry. Anticipating further grow, GTI aims to go public in the future.

In February 1999, Kobe Steel spun off its LSI Center and established KLDI. With design and LSI embedded software development capabilities, KLDI provides design services to semiconductor and electrical equipment manufacturers. It has built a solid position in the digital appliance and telecommunication equipment fields.

Genesis Technology is Japan's largest independent semiconductor testing company and one of the biggest in the world. In April 2003, Kobe Steel transferred a 65% equity share to Nikko Principal Investments Japan Ltd. In a management buyout, GTI's management acquired a portion of GTI's equity, while Kobe Steel continues to support GTI as its second largest shareholder.

Outsourcing is increasing in the semiconductor industry. KLDI and GTI have many common customers, and the business consolidation will offer them a comprehensive range of services covering semiconductor design, assembly and testing. GTI has its sights on turnkey services for fabless production, and the integration of KLDI will enable GTI to further grow as a unique solution provider in the semiconductor field.




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