IC Design Firms Seek Alternatives to Meet Foundry-Service Demand (CUBE uses TSMC to fab its chips)
nikkeibp.asiabiztech.com
June 1, 1999 (TAIPEI) -- Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC) and
United Microelectronics Corp. (UMC) are operating their production lines at full
capacity, and local IC design firms are seeking alternatives to meet their delivery
deadlines.
Sunplus Technology Co., Ltd., Taiwan's largest design house for consumer IC
products, said it may allocate a portion of its orders to Winbond Electronics Corp., or
even Korean wafer foundry firms. The company has a long-term partnership with
TSMC, but Sunplus must now seek other alternatives. Sunplus is planning to
introduce new products to maximize its profits in the second half of the year.
The Hsinchu-based Elan Microelectronics Corp. also is seeking stable supplies from
other local wafer foundry firms, in the light of the full production schedules of UMC
and TSMC. Elan has applied for a listing on the over-the-counter stock market, and
has set an earnings target at NT$558 million this year.
Its January-April earnings grew 159 percent year-on-year to NT$140 million.
(NT$32.74 = US$1)
Smaller design houses, including Progate Group Corp., Trumpion Microelectronic Inc.
and Micon Design Technology Co., Ltd., are clients of TSMC. Of those companies,
only Micon has announced definite plans to place orders with Korean foundry firms,
to maintain stable shipments.
Taiwan's design houses have said that although Korean foundry firms such as LG
Electronics Inc. and Samsung Electronics Co., Ltd. demand payment in cash or letter
of credit, they still will consider placing orders with them, in the light of the urgent
need to meet their shipment deadlines.
(Commercial Times, Taiwan) |
