Applied Materials No-Politics Thread (AMAT) Message Board

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Technology Stocks : Applied Materials No-Politics Thread (AMAT)

AMAT 259.21

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Dec 12 9:30 AM EST

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To: etchmeister who wrote (16947)	12/23/2005 2:05:37 AM
From: niek	of 25522

TSMC outsourcing due to tight capacity DigiTimes.com Friday 23 December 2005 Taiwan Semiconductor Manufacturing Company (TSMC) is outsourcing part of its production using 0.18 and 0.15 micron processes due to tight capacity amid strong demand, sources with IC design houses said. Strong demand for set-top box (STB) and MP3 chips, DVD player single chips, and digital camera controller ICs has resulted in TSMC’s tight capacity, the sources said. TSMC is letting Vanguard International Semiconductor (VIS), Ningbo Sinomos Semiconductor Incorporated (NSSI) and Wafer Tech handle some of the orders that it will not be able to deliver on time, the sources said. Judging from their recent business contacts with TSMC, IC design houses have found that the foundry giant’s order visibility has already been extended to the second quarter of 2006, and that TSMC will be running at full capacity in the first quarter, the sources said. A large part of outsourcing orders VIS has received from TSMC is for DVD player single chips, the sources said.

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