Wafer Works has China chip foundry in the works: report
STAFF WRITER
Taiwan's Wafer Works Corpora-tion (¦X´¹¬ì§Þ ) is reportedly planning to set up a 6-inch chip foundry with China's Beijing Oriental Electronics Group (¥_¨ÊªF¤è¹q¤l¶°¹Î) in Beijing, local Chinese media said yesterday.
According to the report, Nasa Tsai (½²«n¶¯), chairman of Wafer Works Corporation and former vice president of Mosel Vitelic Inc (Zª¿¹q¤l), paired with Oriental to build the foundry. Construction of the plant will begin by the end of October and is expected to begin operations in mid-2002, Wang Dong-sheng (¤ýªF¤É), chairman of Oriental was quoted as saying.
Oriental, a major Chinese industrial and consumer electronic products company, was reported to provide 30 percent of the capital needed to build the plant. The company has listed on the Shanghai stock exchange.
Tsai reportedly declined to comment, saying the speculation started after he assisted in the establishment of a foundry in China's southern city of Wuxi a few years ago and due to his contacts with China's chip industry during his time at Mosel Vitelic.
But sources in the semiconductor industry said that Tsai was sourcing second-hand manufacturing equipment for 6-inch chips, saying it is for a Beijing construction project.
Wang pointed out the large potential of China's chip manufacturing industry, saying that currently 90 percent of China's chips are imported from other countries. Oriental currently has a 4-inch chip foundry and expects to more closely co-operate with Taiwanese firms in chip and notebook computer manufacturing, according to Wang.
Forty percent of China's personal computer market is centered in Northern China, with 50 percent of the laptop market located in Beijing.
Wang said it is the perfect timing for Taiwanese businessmen to enter the Chinese market prior to China's expected entry into the WTO, when various incentives are being extended to Taiwanese investors.
Oriental, Beijing's first B-share listed company, has assets surpassing NT$8.1 billion. |
