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NEC Electronics Corp. said it will spend ¥5 billion building a power chip factory to meet demand for semiconductors that control the flow of electricity.

The plant in Shiga Prefecture will be completed next October, NEC said Tuesday. The production line, the company’s third for power chips, will help raise monthly output of 8-inch wafers 37 percent to 37,000 units by March 2009, it said.

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