05:24 AM ET 09/06/00
Taiwan's TSMC, UMC say clients not pulling orders
TAIPEI, Sept 6 (Reuters) - The world's two top microchip
foundries denied a local newspaper report on Wednesday which
said the Taiwan-based duo were losing orders because of slower
than expected mobile phone sales.
The Economic Daily News reported that mobile phone sales
were not as good as expected, forcing international telecom
giants like Motorola and Alcatel to withdraw
orders from Taiwan's foundries, or made-to-order chip
manufacturers.
Both Taiwan Semiconductor Manufacturing Co (TSMC)
<2330.TW>, the world's largest foundry, and second-ranked
United Microelectronics Corp (UMC) <2303.TW>, said demand for
their products far exceeded their supply.
"This is impossible," a TSMC spokesman told Reuters. "We
don't worry at all over losing orders. Our capacity utilisation
rate still far exceeds 100 percent."
TSMC's total sales for the first seven months of 2000 rose
a year-on-year 120.1 percent to T$79.934 billion, the firm
said.
A UMC spokesman called the report "a rumour."
"We did not lose any orders from our buyers. Demand for our
products still far exceeds our capacity," he said by telephone.
UMC's cumulative sales for the first seven months jumped
232.57 percent year-on-year to T$53.08 billion, the company
said.
On Wednesday, TSMC shares fell T$3.00 to T$131.00 and UMC
shares lost T$2.50 to T$80.00 in line with a 2.25 percent fall
in the TAIEX <.TWII> share index.
($1 = T$31)
((James Peng, Taipei newsroom, +886 2 2508-0815 fax +886 2
2508-0204, taipei.newsroom@reuters.com)) |
