TSMC, UMC, Chartered Plan to Raise Wafer Contract Prices
February 2, 1999 (TAIPEI) -- Taiwan Semiconductor Manufacturing Co., Ltd.
(TSMC) and United Microelectronics Corp. (UMC) plan to raise OEM prices to
maintain profitability.
Taiwan's two leading semiconductor makers said they are making the move after seeing
a return in wafer OEM orders and tightening demand for 0.25-micron production.
This marks a sharp reversal of the situation in 1998, when the semiconductor industry
reported a glut in production and the production utilization rate fell. This in turn pressed
prices down.
In 1999, foreign customers' orders are returning, and a number of wafer contract
makers report operating at full capacity.
Chartered Semiconductor Manufacturing Ltd. of Singapore also plans to raise contract
prices starting in the second quarter in order to maintain profitability.
An executive in charge of Chartered's Taiwan operations said his company will raise
prices on 0.35- to 0.5-micron products by 20-25 percent in the second quarter, mostly
in an effort to make up for losses in 1998.
Starting early this year, Chartered's wafer production line has been fully booked, with
ordered volume already exceeding 15 percent of available capacity. That provides the
company with a solid reason to raise prices.
Chartered said that at present, 0.35-micron remains the mainstream of its wafer output,
while demand for 0.25-micron and 6-in. production continues to increase.
The price of Chartered's 0.35-micron production fell to US$800 at the end of last year
from a high of US$1,400 early last year. A hike will bring it back up to US$1,000, the
executive said.
An industry observer said TSMC's new prices are expected to be 10 percent above
those of UMC, while the latter normally sets prices 10 percent higher than those of
Chartered.
nikkeibp.asiabiztech.com. |
