New IC Designers Mushroom in Taiwan, Plan to Issue Stock in 2000
January 11, 2000 (TAIPEI) -- Taiwan's integrated circuit designing sector is developing rapidly, with scores of such companies having been set up.
Their greatest challenges this year, however, are whether or not they can solicit support from contract manufacturers of wafers and if their plan to go public will be approved.<BR><BR>There are now at least 130 IC designing companies in Taiwan, second only to California's Silicon Valley. In addition to companies established by enterprises that are listed on the local over-the-counter market, there are also IC designers invested by research organizations working with conglomerates and venture capital firms. In addition, some Chinese-Americans have shifted their IC designing companies from the United States to Taiwan. As most newcomers are still in the initial stage of operations without any profits, it is difficult for them to negotiate with contract manufacturers of wafers. Unless they have products with great market potential and bright prospects, new IC designing companies are expected to be troubled by difficulties getting support from wafer manufacturers.<BR><BR>IC designers that have operated for some time are actively planning to list their stock on the Taiwan Stock Exchange or the OTC market this year. Elan Microelectronics Corp. has been approved to go public in the OTC market in the first quarter, and is most likely to become a new star in the market. Destiny Technology Corp. plans to apply for an OTC listing in the second quarter. <BR><BR>The company, composed of software, Internet and ASICs, among other units, reported NT$725 million in operating revenues for 1999. Prolific Technology Inc. hopes to trade its stock on the OTC market in two to three years. Its operating revenues are seen reaching NT$400 million this year, with USB ICs as a major product. Moreover, Integrated Silicon Solution Inc. plans to send in an application for an OTC listing in June.
(Commercial Times, Taiwan) |
