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NORTHERN TELECOM TO ESTABLISH VLSI PLANT AND DESIGN CENTER IN SHANGHAI

 SHANGHAI, China, Oct. 7 /PRNewswire/ -- Today in Shanghai, Northern Telecom (NYSE: NT) signed a memorandum of agreement with the Shanghai Instrumentation and Electronics Bureau which is expected to lead to the establishment of two joint ventures including an advanced VLSI (very large scale integrated) circuit fabrication facility and a VLSI circuit design centre in the People's Republic of China.
 The new VLSI circuit design center will design and supply application specific integrated circuit (ASIC) devices for Chinese industries including consumer electronics, telecommunications, and instrumentation.
 The VLSI manufacturing facility will be designed to produce advanced CMOS and BiCMOS circuits based on one-micron technology and in the future sub-micron technology. The CMOS and BiCMOS circuits will be targeted for electronics factories in the Shanghai area, as well as in other parts of China.
 Commenting on the signing, Northern Telecom President and Chief Executive Officer Jean C. Monty said: "We are excited about the prospects for these two joint ventures in Shanghai. The transfer of this technology and expertise will contribute to China's future development as well as increase Shanghai's reputation as a leading electronics center.
 "Shanghai is the natural choice for this operation since the city is home to a major electronics markets and is equipped with excellent infrastructure for advanced technology design and manufacturing," added Monty.
 Earlier this year, Northern Telecom moved to enhance its relationship with China. In June, the company signed a memorandum of understanding (MOU) with the State Planning Commission (SPC) of China covering a broad range of manufacturing, research and development, technical and training projects designed to help modernize China's telecommunications infrastructure.
 These two joint ventures are planned to commence full operation next year following training of local employees by Northern Telecom engineers and telecommunications VLSI experts. This scale of technology transfer will ensure the centre will become a leader in telecommunications IC applications and design in China.
 Design center staff will work closely with top Chinese universities and technical institutions to enhance technical cooperation and training of local employees across the country.
 Northern Telecom is the leading global supplier of fully digital telecommunications switching systems, providing products and services to telephone operating companies, corporations, governments, universities and other institutions worldwide. In the Asia/Pacific region Northern Telecom provides marketing, sales and support of products ranging from Meridian PBX systems and digital wireless communications systems to optical transmission and DMS digital switching systems. Northern Telecom has wholly owned or joint venture manufacturing operations in Malaysia, Thailand, Australia and the People's Republic of China. The corporation's research and development arm, Bell Northern Research, maintains laboratories in Australia and Japan. Northern Telecom employs approximately 60,000 people worldwide and had 1992 revenues of US$8.41 billion.
 -0- 10/7/93
 /CONTACT: Tom Koppel of Northern Telecom Asia/Pacific, Tokyo, 813-5420-3363, or Frank J. McNally of Northern Telecom, 703-712-8374/
 (NT)


CO: Northern Telecom; Shanghai Instrumentation and Electronics Bureau ST: Virginia IN: TLS SU: JVN

KD-MH -- DC008 -- 9703 10/07/93 10:48 EDT
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Publication:PR Newswire
Date:Oct 7, 1993
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