For the development and manufacture of fiber optic components, Infineon Technologies AG of Munich, Germany, and United Epitaxy Co. Ltd. of Hsinchu, Taiwan, have formed a joint venture that will be established in October and based within the latter company's facility at Hsinchu Science-Based Industrial Park. The parent companies will license their technologies to the joint venture, which will, in return, manufacture optochips for them. The chips will be assembled into microsystems and components for high-speed data and transmission products based on fiber optics technology for use in telecommunications and data communications networks.

The total investment for the new firm over the next five years will be roughly $12 million, with Infineon holding 56 percent of the shares and United Epitaxy, 44 percent, subject to approval by the German antitrust authority. The joint venture will employ approximately 120 people when fully operating.