Cube's semiconductor foundry is TSMC........
TSMC buying 30% of Acer Semiconductor to bolster foundry activities
A service of Semiconductor Business News, CMP Media Inc.
Story updated 12:30 a.m. EST/9:30 a.m., PST, 6/8/99
HSINCHU, Taiwan--Taiwan Semiconductor Manufacturing Co.
and the Acer Group here announced an expansion of their strategic
alliance, including TSMC's agreement to acquire 30% of Acer
Semiconductor Manufacturing Inc. As part of the agreement, ASMI
will be renamed TSMC-Acer Semiconductor Corp.
"Not only will TSMC purchase 30% of ASMI shares, but we will
also provide full support to transform ASMI into another leading
dedicated foundry," said Morris Chang, chairman of TSMC. "This
agreement will help both companies establish a mutually
complementary capacity support system and further strengthen the
already strong alliance between TSMC and Acer."
TSMC, the world's largest pure-play silicon foundry, will purchase
the ASMI shares for NT$5.47 billion ($170 million), or at NT$9.5
per share. Acer will continue to hold 30% of the ASMI shares.
TSMC and Acer said they plan to expand their collaboration in IC
manufacturing technology, capacity support, and management. The
new agreement stipulates that TSMC will manage the newly formed
corporation turning it into a dedicated foundry company. As a result,
the future president of ASMI will be assigned by TSMC, and the
new chairman will be selected from TSMC's four director positions.
To position itself as a dedicated foundry, ASMI plans to hold a cash
offering of NT$8 billion to NT$10 billion (US $240 million to $310
million) in order to purchase new equipment to adjust parts of its
operation line to logic-based processes. The company said it
expects a monthly capacity for 0.25- and 0.22-micron technologies
will be increased to 38,000 eight-inch wafers by the end of 2000.
Acer's chairman Stan Shih said a portion of ASMI's capacity will
continue to serve the internal needs of the Taiwan computer maker.
He said the move to create a new foundry company with TSMC
will enable the Acer Group to concentrate more of its efforts on
developing PCs, peripherals and other key components in its
business. To do that, Acer this week announced it was entering into
a seven-year technology and procurement agreement with IBM
Corp. (see June 7 story).
"After TSMC takes the lead in ASMI's management, Acer can
concentrate on aggressively developing its PC, peripherals and key
components business and exploring opportunities in intellectual
property and digital service," Shih said. "Also, Acer can focus on
reinforcing its IC design innovation to create new opportunities for
ASMI to manufacture ICs. At the same time, we will work closely
with TSMC to leverage each other's strengths, give mutual support
and enhance the competitiveness of both companies. This alliance is
sure to increase Taiwan's influence in the global IT industry." |
