Philips aims to outsource 50% of wafer production to Asia within five years
Samson Yu, Taipei; Jack Lu, DigiTimes.com [Tuesday 17 February 2004]
In a bid to further reduce manufacturing costs, Philips Semiconductors plans to be outsourcing half of its chip production to Asian foundries within the next five years, up from 10% currently, according to Rob Fletcher, a vice president and general manager of Philips Semiconductors in the Asia-Pacific region.
Philips president and CEO Scott McGregor made a similar remark during a visit to Taiwan last September. However, McGregor did not then disclose a specific timeframe for this goal.
Philips outsources to Taiwan Semiconductor Manufacturing Company (TSMC), United Microelectronics Corporation (UMC) and Singapore-based Chartered Semiconductor Manufacturing. It holds a 19% stake in TSMC.
In China, Philips and local foundry Jilin Sino-Microelectronics Company (JSMC) established a joint venture called Philips Jilin Semiconductor in November to develop, design and manufacture bipolar power products. Philips also holds a major stake in Advanced Semiconductor Manufacturing Corporation Shanghai (ASMC Shanghai).
After 10 quarters of losses, Philips became profitable in the fourth quarter of last year as sales increased, margins improved, R&D spending dropped and benefits from earlier restructuring programs were realized. Net sales edged up 7% year-on-year to 1.5 billion euros and operating profits reached 166 million euros, the company announced on February 10. |
