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P.T. NEC Humpuss Semiconductors Indonesia
Celebrates Official Opening Ceremony
NEC Corporation's (NEC) joint venture in Indonesia, P.T. NEC Humpuss Semiconductors Indonesia, is holding an official opening ceremony today at the East Jakarta Industrial Park in the Jakarta suburb of Bekasi.
The ceremony will be hosted by Mr. Masaru Nakagiri, President of P.T. NEC Humpuss Semiconductors Indonesia. The guests of honor are Mr. Tunky Ariwibowo, Ir., Minister of Industry and Trade and Dr. Hisashi Kaneko, President of NEC Corporation.
This new assembly plant, with a capital investment of 4.5 billion yen (US$ 45 million), is the first Japanese-Indonesian semiconductor joint venture in Indonesia. It was officially established in September 1995 as a joint venture between NEC Corporation, P.T. Humpuss Elektronika and Sumitomo Corporation.
The plant began production in January this year and is targeting to manufacture 15 million ICs and 100 million Signal Transistors per month. These products are used in personal computers, televisions, VCRs and other home electronic products.
NEC has an ambitious five year plan for the plant, where the company will eventually employ 600 staff and see annual sales of US$ 45 million. It plans to continue financial and technical investments by introducing high technology products in the future, such as microcomputers and ASICs (Application Specific Integrated Circuits).
The Indonesian government has long been nurturing the growth of high-tech industries in Indonesia, and this positive stance towards technology was an influential factor in NEC participating in a joint venture here. Moreover, NEC's global semiconductor strategy is for production and sales functions to be located in each of its markets. With this in mind, NEC entered into the joint venture with P.T. Humpuss Elektronika and Sumitomo Corporation.
"This joint venture brings together the complimentary strengths of the three partners to achieve their long term goals", said Dr. Hisashi Kaneko, President of NEC Corporation. "In line with our 'C&C' corporate philosophy (the integration of computers and communications), NEC has again demonstrated that it is committed to Asia's development, not just economically, but also to provide the people with the technological skills they would need to be competitive as we approach the next millennium".
The addition of P.T. NEC Humpuss Semiconductors Indonesia to the NEC global Semiconductor Group brings the number of its plants in Asia to four, enhancing NEC's position as the second largest semiconductor company in the world. Besides strengthening NEC's global production network, NEC aims for this new joint venture to contribute to the economic and technological progress of Indonesia and the Asian region.
For Outline of the Joint Venture and NEC Corporation and P. T. Humpuss Elektronika and Sumitomo Corporation, please see the attached sheet.
It was another assembly and test facility. Assembly or test are important tasks no doubt.
However, with Singapore losing its competitive edge in this critical industry, Indonesia can not afford to remain at the bottom of the value chain anymore.
Indonesia would have to move up the value chain or abandon any hopes of claiming its place as the leading regional player.
With no semiconductor industry, no nuclear or space technology achievements of note, it is hard to imagine a region led by Indonesia.
To the best of my understanding, there is no aircraft engine, turbofan or turbojet, with low bypass ratio or high bypass ratio, that were ever designed, built, assembled and tested in Indonesia.
I would argue there is indeed a really long way to go for Indonesia before it can be compared favourably with relatively smaller countries such as Turkey, Egypt, Iran, Pakistan or Saudi Arabia in industrial, technological or defence-industry matters.
It is not certain if Indonesia can compare favourably against its immediate neighbour to the South in Australia or to two of the bigger Asian/global giants in China or India.
Arguably, South Korea and Taiwan are individually much more powerful and more advanced than Indonesia in many areas of interest.