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Politics : Formerly About Applied Materials
AMAT 339.94+3.3%Feb 11 3:59 PM EST

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To: Jack Kunkle who wrote (7793)9/8/1997 10:17:00 AM
From: Teri Skogerboe   of 70976
 
A service of Semiconductor Business News, CMP Media Inc.
Story posted at 9 a.m. EDT/6 a.m. PDT, 9/8/97

More chip plants slated for southern Taiwan

TAIPEI, TAIWAN -- Two Taiwan companies--Advanced Semiconductor
Engineering Inc. (ASE) and ChipMos Technologies Inc.--have separately
announced plans to break ground on new IC test and assembly plants at the new science park in the southern city of Tainan. The announcements are the latest in Taiwan's aggressive build up of chip making capacity (see feature from September publication).

Kaoshiung-based ASE, one of the world's largest IC test and assembly
houses, will shortly break ground on a $350 million facility in Tainan. The plant will offer BGA, QFP, and other advanced IC packaging services for chip customers, according to ASE officials. However, the company declined to comment when the Tainan plant will be open for business.

In moving into Tainan, ASE did say it is following its strategic partner in the IC business--Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC), Hsinchu. Last spring, TSMC announced a $14.5 billion investment in Tainan, including a plan to build one 8-inch fab and five 300-mm plants.

Earlier this year, TSMC announced a strategic alliance with ASE under which TSMC would refer its IC-wafer foundry customers to ASE's back-end test and assembly services.

ASE also has IC back-end plants in other locations, including Kaoshiung, Taiwan; Penang, Malaysia; and in the future, Manila, the Philippines.

Meanwhile, ChipMos, a joint IC test and assembly venture between
Hsinchu-based Mosel-Vitelic Inc. and Siliconware Corp., will break ground on its initial plant in Tainan this week.

ChipMos, which was officially announced earlier this year, declined to
comment on its future plans, however.

techweb.cmp.com
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