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Technology Stocks : Taiwan Semiconductor (NYSE: TSM) -- Ignore unavailable to you. Want to Upgrade?

To: fut_trade who wrote (526)	6/11/1999 3:46:00 PM
From: fut_trade	Read Replies (1) \| Respond to of 684

biz.yahoo.com

To: fut_trade who wrote (526)	6/23/1999 2:42:00 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 684

TSMC, UMC Advance New Strategies to Bolster Competitiveness June 23, 1999 (TAIPEI) -- Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC) and United Microelectronic Corp. (UMC) are drawing up new strategies to enhance their competitiveness. Strong demand for wafer foundry services is likely to prompt TSMC and UMC to increase service charges in the third quarter amid tight supply conditions. Both companies said that a sharp increase in charges is unlikely. However, they confirmed that they will readjust service charges to the level quoted in the first quarter of 1998, which is a clear sign of recovery in the foundry business. TSMC and UMC have not slowed their efforts to expand operations through mergers, acquisitions and strategic alliances. After purchasing 30 percent of Acer Semiconductor Manufacturing Inc., TSMC proceeded with talks to cooperate with Powerchip Semiconductor Manufacturing Corp. and its major shareholder, Mitsubishi Corp. Recently, UMC surprised the industry by announcing a merger of five wafer firms in its business group, following its takeover of Nippon Steel Semiconductor Corp. and Holtek Microelectronic Corp. (renamed UTEK Semiconductor Corp.) in 1998. John Hsuan of UMC revealed that UMC's book-to-bill ratio registers about 1.5. Thus, demand for its services is exceeding output by 50 percent. Hsuan predicted that the strong demand for wafer foundry services will continue for at least two years along with the tendency for integrated device manufacturers (IDMs) to sign outsourcing orders with an aim to reduce costs. To meet the brisk demand, UMC intends to improve its competitiveness by cutting costs by 30 percent while boosting sales above NT$70 billion after the merger. Industry analysts said that TSMC appears to have gained the upper hand in the competition of winning clients among IDMs. TSMC has already won contracts from Motorola Inc. and Fujitsu Ltd. so far this year, and is in talks with IBM Corp. TSMC chairman Morris Chang said the company's cooperation with IBM may not be limited to wafer foundry services. U.S. firms including Intel Corp., Advanced Micro Devices Inc., Texas Instrument Corp. and Motorola as well as Japan's NEC Corp. and Fujitsu, have been closely linked with Taiwan's wafer foundry makers for chip supplies. Lucent Technologies Inc. is reportedly contacting Taiwan-based firms for outsourcing possibilities, to secure a stable supply of microchips at low costs. TSMC's Chang said that he is optimistic on the outlook for the wafer foundry industry in the next few years, but he admitted that Taiwan remains a long way from multinational giants in R&D and marketing/distribution capabilities. "With IC design houses booming in Taiwan and around the world, prospects for wafer foundry services will remain bright," Chang said. He predicted that Taiwan will soon replace Korea as the third largest manufacturer of semiconductor products. (Commercial Times, Taiwan) nikkeibp.asiabiztech.com