Germany's Siemens AG has said it plans to collaborate with Motorola in developing new computer chip manufacturing technology in Dresden in eastern Germany.
The two companies, which are already constructing a semiconductor plant in Virginia, aim to produce chips on 300-millimetre disks instead of the 200-millimetre wafers now used.
Siemens will detail the plans at a joint news conference in Dresden next week.
"For a number of months, Siemens and Motorola have been evaluating the complex technical challenges associated with the move from 200 millimetre to 300 millimetre wafer manufacturing technology and their possible collaboration," Siemens said.
"The formative period has now been completed and the two companies will present the project on January 12th."
Siemens and Motorola reportedly plan to build a pilot production site in Dresden, where the German electronics giant opened a DM2.7 billion (£1.08 billion) chip plant in 1995.
It has been reported the venture will create thousands of jobs and Bonn may offer financial support.
Previously, Siemens had declined to elaborate on reports it was talking to Motorola about a new Dresden chip plant.
The change to 300-millimetre wafers could reduce the cost of making computer memories and other chips by as much as 30 percent, according to analysts' estimates.
