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Politics : Formerly About Applied Materials

AMAT 256.40

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Dec 19 3:59 PM EST

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To: StanX Long who wrote (59842)	2/1/2002 2:14:27 AM
From: StanX Long	Read Replies (1) of 70976

UMC's Plan to Build Singapore Chip Plant May Boost Confidence By Alan Patterson 02/01 00:49 quote.bloomberg.com Taipei, Feb. 1 (Bloomberg) -- United Microelectronics Corp.'s plans to build a plant in Singapore with Advanced Micro Devices Inc. may boost confidence in the Taiwan chipmaker's ability to compete with larger rival Taiwan Semiconductor Manufacturing Co. Advanced Micro, Intel Corp.'s nearest competitor in the computer processor business, probably chose UMC, the second- largest maker of chips for other companies, because of its ability to make 300-millimeter silicon wafers that will cut production costs by as much as a third, investors said. ``This indicates that UMC is succeeding in its effort to develop high-end technology,'' said Ben Akrigg, who counts UMC shares among the $2.5 billion he helps manage at Morley Fund Management. ``It's unlikely to generate new revenue for UMC until 2006, however.'' The partners said they expect to begin production of microprocessors and other chips in the venture to be known as AU Pte Ltd. by mid-2005. The companies gave no financial details. AMD said it must catch up with Intel, the biggest chipmaker, by building plants that make 300-millimeter wafers. Intel and UMC are among fewer than 10 companies that are making the larger dinner-plate-sized disks. The two companies also announced an agreement under which UMC will make high-end PC processors to augment production at AMD's Dresden, Germany facility.

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