China-based Grace Semiconductor has set up a subsidiary in Japan with Hideaki Ito, who in the past supervised Hitachi's overseas semiconductor operations, as its president. This subsidiary, with an initial capital of 10 million Yen (US$86,200; US$1 = 116 Yen) is wholly owned by Grace Semiconductor, and will focus on obtaining outsourcing orders from Japanese semiconductor firms. It is aimed at producing logic chips with 0.15-micron technology, and it hopes to attract orders for microprocessors used in flash memory.