Craig, they DO have buyers in the wings and
you ARE an NSM detractor. Let the bidding begin!
TSMC in Talks to Buy National Semiconductor's Chip Unit
Hsinchu, Taiwan, May 12 (Bloomberg) -- Taiwan Semiconductor Manufacturing Co., the world's leading maker of custom-designed chips, said it's in talks with National Semiconductor Corp. to buy National's computer chip factory.
J.H. Tseng, a TSMC spokesman, said talks are in progress. He declined to give further details.
National, a Santa Clara, California-based maker of chips for cars, telephones and computers, said last week it is in talks to sell a majority stake in its South Portland, Maine, plant as part of its plan to cut costs and return to profitability.
National said it expects to return to profit in the quarter ending November after it sheds the unprofitable factory and cuts 550 jobs, or 4.8 percent of its workforce. National hopes to complete the sale by November.
For its part, TSMC may be looking to win orders from National, said Connor Liu, a semiconductor analyst with Jardine Fleming Taiwan Co.
TSMC already produces chips for big companies such as Fujitsu Ltd. and ATI Technologies Inc. of Canada. Adding National to its client base would bolster earnings, Liu said.
TSMC is a so-called ''chip foundry,'' meaning it works on contract for companies and doesn't sell chips under its own brand name.
Separately, Tseng said TSMC's capital expenditure this year would rise to NT$27.38 billion ($830 million) from $800 million in 1998. That suggests the company is bullish on the chip industry, which is now rebounding from a three-year slump.
TSMC shares rose NT$3, or 2.8 percent, to NT$109. The share was the most actively traded by value on the Taiwan market.
NYSE/AMEX delayed 20 min. NASDAQ delayed 15 min
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