UMC expects lower sales but
higher profits after shift to foundry
By Mark LaPedus
HSINCHU, Taiwan -- Amid a corporate-wide reorganization, Taiwan's United Microelectronics Corp. (UMC) has raised its profit forecast to $278.9 million for 1997, up over 8% from $257 million.
However, Hsinchu-based UMC lowered its sales forecast to $803.6 million for 1997, down 6% from $861.4 million.
The company attributed the lower-than-expected sales figures due to its shift from the standard IC products business, to a pure-play, IC-wafer foundry strategy, according to John Hsuan, formerly president of UMC.
As part of a corporate-wide reorganization, Hsuan has been named to the new post of chief executive for UMC's domestic opeartions.
Meanwhile, UMC has shifted worldwide sales and marketing responsibilities from the company's Hsinchu-based operations, over to Donald Brooks, formerly president of UMC's international operations, who is now based in Sunnyvale, Calif. Brooks has been given the new title of chief executive of UMC's international operations. |
