IC Design Firms Seek Alternatives to Meet Foundry-Service Demand
June 1, 1999 (TAIPEI) -- Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC) and United Microelectronics Corp. (UMC) are operating their production lines at full capacity, and local IC design firms are seeking alternatives to meet their delivery deadlines.
Sunplus Technology Co., Ltd., Taiwan's largest design house for consumer IC products, said it may allocate a portion of its orders to Winbond Electronics Corp., or even Korean wafer foundry firms. The company has a long-term partnership with TSMC, but Sunplus must now seek other alternatives. Sunplus is planning to introduce new products to maximize its profits in the second half of the year.
The Hsinchu-based Elan Microelectronics Corp. also is seeking stable supplies from other local wafer foundry firms, in the light of the full production schedules of UMC and TSMC. Elan has applied for a listing on the over-the-counter stock market, and has set an earnings target at NT$558 million this year.
Its January-April earnings grew 159 percent year-on-year to NT$140 million. (NT$32.74 = US$1)
Smaller design houses, including Progate Group Corp., Trumpion Microelectronic Inc. and Micon Design Technology Co., Ltd., are clients of TSMC. Of those companies, only Micon has announced definite plans to place orders with Korean foundry firms, to maintain stable shipments.
Taiwan's design houses have said that although Korean foundry firms such as LG Electronics Inc. and Samsung Electronics Co., Ltd. demand payment in cash or letter of credit, they still will consider placing orders with them, in the light of the urgent need to meet their shipment deadlines.
(Commercial Times, Taiwan)
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