NEC Elec says developed 55-nano chip technology

TOKYO (Reuters) - Japan's NEC Electronics Corp said on Monday it has developed a technology to make advanced microchips with circuitry width of 55-nanometres, and would aim to start mass-production by the end of 2007.

NEC Electronics currently makes chips with circuitry widths of 90 nanometres, or billionths of a metre, putting it behind some players in the race to finer circuity, which decreases the size of a chip and cuts per-unit production costs.

Intel and Matsushita Electric Industrial, for example, have already started mass production of 65-nanometre chips. South Korea's Samsung Electronics aims to produce 50-nanometre class chips next year.

NEC Electronics, the world's eighth-largest semiconductor maker that is 70 percent owned by Japanese electronics conglomerate NEC, said it would use the technology to make system chips for mobile phones and other mobile devices.

"We are focusing on chips that consume very little power. This would make them suitable for mobile devices such as game machines, mobile phones or PDAs (personal digital assistants)," an NEC Electronics spokesman said.

On even more advanced 45-nanometre chips, NEC Electronics and seventh-ranked Toshiba announced plans last month to co-develop the cutting-edge products so as to share hefty development costs and cut time to market.

Costs for development and production equipment are rising rapidly. With the exception of Intel and a few other giants in the industry, most chip makers are finding it difficult to shoulder the burden alone.

Matsushita and Renesas Technology Corp said last month that they were considering jointly developing 45-nanometre chips, extending their existing cooperation in 65-nanometre chips.

Intel, the world's largest semiconductor maker, said on Thursday it would build a 45-nanometre chip factory, which would cost more than US$3.5 billion, in Israel -- its second such plant after one being built in Arizona.