Jan 10, 2008

Press Release

FOR IMMEDIATE RELEASE

Akira Kadota, International PR
Matsushita Electric Industrial Co., Ltd.
  Tel: 03-3578-1237  Fax: 03-3436-6766
Panasonic News Bureau
  Tel: 03-3542-6205  Fax: 03-3542-9018

Panasonic to Invest 94 Billion Yen
To Expand Image Sensor Production in Japan



The New Panasonic Semiconductor Plant in Tonami, Toyama Prefecture(236KB)

Osaka, Japan - Panasonic, the leading brand by which Matsushita Electric Industrial Co., Ltd. is known, today announced its plans for the expansion of semiconductor production facility at its Tonami plant in Toyama Prefecture, Japan. The construction of the new facility which will produce image sensors for various digital appliances will start in September 2008 and production will be launched in August 2009. The company plans to invest 94 billion yen for the expansion.

Panasonic has been developing its semiconductor business with advanced system LSIs at the core, focusing on five digital consumer electronics areas including optical disc devices, digital TV sets, mobile communications, image sensing and automotive electronics. The semiconductor business is backed by the combined system technology capabilities of the Panasonic Group and its low-power consumption, high-speed signal processing and fine patterning technologies, which are critical requirements for consumer electronics.

Panasonic has led the growth of the digital consumer electronics market with the company's original MOS image sensor, νMaicovicon®, and charge coupled devices (CCD) for digital cameras, camcorders and mobile phone applications. The new plant, capable of coping with the progress of fine processing technology, will respond to the rapid expansion of the digital camera and other image-related markets and demand for more sophisticated features including higher resolutions.

The new plant will strengthen Panasonic's image sensor business in areas of digital cameras, in-vehicle devices, camcorders, broadcasting and medical equipment. After commencing production in August 2009, the company plans to gradually increase its production capacity up to 30,000 wafers per month.

The new plant will employ environmental measures including local cleaning technology to reduce CO2 emissions from the air conditioning systems in cleanrooms by 30 percent compared with the existing plant.

Outline of New Expansion

1. Address: 271 Higashikaihotsu, Tonami-City, Toyama Prefecture, Japan
2. Investment: Approximately 94 billion yen
3. Land area: 17,000 square meters
4. Total floor space: 48,000 square meters
5. Cleanroom floor space: Approximately 10,000 square meters
6. Products: Image sensors
7. Production capacity: 30,000 (200-mm diameter equivalent) wafers per month

About Panasonic

Best known for its Panasonic brand name, Matsushita Electric Industrial Co., Ltd. is a worldwide leader in the development and manufacture of electronic products for a wide range of consumer, business, and industrial needs. Based in Osaka, Japan, the company recorded consolidated net sales of US$77.19 billion for the year ended March 31, 2007. The company's shares are listed on the Tokyo, Osaka, Nagoya and New York (NYSE:MC) stock exchanges. For more information on the company and the Panasonic brand, visit the company's website at http://panasonic.net/.


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