UMC likely to reap huge returns from IC design house investments
Taipei, Nov. 16, 2000 (CENS)--United Microelectronics Corp. (UMC) will gain handsome profit from its investments in Integrated Technology Express (ITE), Inc. and Integrated Telecom Express (ITeX), Inc., according to W.S. Chen, chairman of the two companies.
Chen made the statement on Tuesday in Las Vegas, where he is attending the Comdex Fall 2000. ITeX is demonstrating its latest asymmetrical digital subscriber line (ADSL) telecommunications technology at the huge computer fair.
UMC holds a 20% stake in the U.S.-based ITeX, an IC designer specializing in asymmetrical DSL and DSL chipsets, and a 30% stake in ITE of Taiwan, a computer chip designer. Chen announced that ITeX has become a major supplier of ADSL chipsets for Pentium 4 processors made by Intel Corp., one of its major investors.
ITeX posted revenue of US$410 million in the first quarter, US$620 million in the second quarter, and US$690 million in the third quarter this year thanks to the thriving ADSL and DSL markets, according to executive vice president Ralph Cognac. Cognac estimated the world market for DSL chips would double to US$500 million in three years from the current US$250 million.
ITeX debuted its latest ADSL modem chip, dubbed the SAM3, this Tuesday at the show. The SAM3 supports the Pentium 4. Chen said that ITE focuses on chips for information appliances.
UMC has invested in at least 20 high-tech companies in Taiwan and abroad. The company estimates that the holdings will generate a total profit of at least NT$50 billion (US$1.55 billion at US$1:NT$32) when they go public. ITeX had a market value of over US$1 billion on the day of its initial public offering. |
