Whoever said the semiconductor market was dead is obviously wrong
Philips Semiconductor Sets Deal
To Build Chip Plant in Singapore
An INTERACTIVE JOURNAL News Roundup
Philips Semiconductors said it will build a $1.2 billion chip plant in Singapore in a joint venture with Taiwan Semiconductor Manufacturing Co. and Singapore's economic development board.
The plan comes at an unlikely time, as chip makers around the world close plants and call off plans for new production facilities. Chip makers have been hurt by the economic downturn in the Asia-Pacific region and reduced demand from computer makers.
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But Philips Semiconductor, part of Philips Electronics NV of the Netherlands, said that the markets it will focus on, with consumer and communications applications, have held up better than other chip areas, and expects demand to pick up over the longer term.
Construction of the plant, which will produce logic chips, is to begin early next year, with production beginning late the following year. Full production capacity is targeted for 2003. The facility will be in Singapore.
"Our projections show that by the time this facility comes on-line late in the year 2000, the market for logic chips will be strong," said Arthur van der Poel, chairman and chief executive officer of Philips Semiconductors. "This is a carefully thought-out, long-term investment."
Philips will hold 48% of the venture. Taiwan Semiconductor will hold 32% and Singapore's Economic Development Board will hold the remaining 20%.
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