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Delphi Increasing Chip Capacity to More Than 1 Million Daily

2 March 2000

Delphi Increasing Chip Capacity to More Than 1 Million Daily

    KOKOMO, Ind., March 2 -- With the growing use of integrated
circuits (ICs) in automobiles, Delphi Automotive Systems is
increasing its chip production to in excess of one million per day.  Unique
among automotive suppliers for its in-house electronics and chip fabrication,
Delphi is installing a new 8-inch sub-micron upgrade at its wafer fabrication
facilities.
    "This will ensure our supply of ICs and other semiconductor components to
provide Delphi with a competitive advantage in the global automotive supply
industry," according to Jeff Owens, general director of engineering for Delphi
Delco Electronics Systems.
    The increased capacity will allow Delphi to supply ICs to outside
customers as well as its own internal systems and components, Owens said.
"The first products from the eight-inch process are scheduled to be available
early this fall," he said.
    "At the same time, we continue to work closely with key IC suppliers and
we also purchase ICs from them to take advantage of advances in the industry,
while internally developing specific processes that are optimized for
automotive applications," Owens said.
    Owens explained that Delphi's strategy is to "use standard ICs wherever
possible and make custom ICs where appropriate to differentiate our products."
    "Complex integrated circuits are used in a variety of Delphi products,
including suspension control systems, safety restraint systems, and fuel,
electrical and ignition management systems.  Reflecting current trends,
increasingly more computing power is being packaged in a single chip to meet
the demands of today's marketplace," Owens said.
    "The investment in our Kokomo wafer fabrication facility enhances
Delphi's position as a technology leader in vehicle electronics and enables
Delphi to maintain in-house capabilities for key enabling technologies used in
many of our future products," Owens said.
    "The additional capacity, moving beyond the current production level of
one million ICs per day, will help us better serve Delphi customers and the
increasingly tight commercial chip market."
    Delphi Automotive Systems, headquartered in Troy, Mich., USA, is a world
leader in transportation and mobile electronics components and systems
technology.  Delphi's three business sectors -- Dynamics & Propulsion; Safety,
Thermal & Electrical Architecture; and Electronics & Mobile Communication --
provide comprehensive product solutions to complex customer needs.  Delphi has
approximately 213,500 employees and operates 175 wholly owned manufacturing
sites, 41 joint ventures, 53 customer centers and sales offices and 27
technical centers in 38 countries.  Regional headquarters are located in
Paris, Tokyo and Sao Paulo, Brazil.  Delphi can be found on the Internet at
http://www.delphiauto.com .