S3 to Post $500 Mln Gain After Selling Interest in Chip Plant
Santa Clara, California, Jan. 5 (Bloomberg) -- S3 Corp.,
the No. 2 designer of fast graphics chips for personal
computers, will post a $500 million first-quarter gain
after one of its partners bought out its share of a Taiwan
semiconductor plant.
United Microelectronics Corp. bought S3's stake in United
Semiconductor Corp. and also completed the purchase of three
other former joint-venture chipmakers yesterday. S3 said the
gain represents the difference between the value of the
252 million United Microelectronics shares it now owns and
its investment in United Semiconductor.
Two other companies said they'll post gains because they
held stakes in the ventures United Microelectronics' acquired.
Alliance Semiconductor Corp. said it expects to recognize a
$532 million fiscal fourth-quarter gain. Xilinx Inc. said
yesterday it will register a $400 million gain in its fiscal
fourth-quarter
United Microelectronics Corp., based in Taiwan, is the world's
No. 2 computer chip ``foundry,' a subcontract manufacturer.
Its shares surged 6.5 percent to a record high of NT$118.5
in Taiwan yesterday on what was the first trading day for
the enlarged company.
S3, based in Santa Clara, California, fell 1/16 to 11 1/8
in early trading. Its shares have risen 50 percent in the
past year. Alliance Semiconductor, also based in Santa
Clara, fell 7/8 to 14 5/8. Xilinx, based in San Jose,
California, fell 2 to 43 11/16.
Jan/05/2000 10:22 |
