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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (30881)	6/8/1999 10:58:00 AM
From: Duker	Respond to of 70976

TSMC to acquire 30% of Acer Semiconductor [Like the last paragraph ... every $300mm helps. --Duker] A service of Semiconductor Business News, CMP Media Inc. Story posted 9 a.m. EST/6 a.m., PST, 6/8/99 HSINCHU, Taiwan--Taiwan Semiconductor Manufacturing Co. and the Acer Group here announced an expansion of their strategic alliance, including TSMC's agreement to acquire 30% of Acer Semiconductor Manufacturing Inc. As part of the agreement, ASMI will be renamed TSMC-Acer Semiconductor Corp. "Not only will TSMC purchase 30% of ASMI shares, but we will also provide full support to transform ASMI into another leading dedicated foundry," said Morris Chang, chairman of TSMC. "This agreement will help both companies establish a mutually complementary capacity support system and further strengthen the already strong alliance between TSMC and Acer." Under the new agreement, TSMC and Acer will expand their collaboration in IC manufacturing technology, capacity support, and management. After the purchase is complete, TSMC and Acer will be the two major shareholders of ASMI, the two companies said. TSMC, the world's largest pure-play silicon foundry, will purchase 30% of the ASMI shares for NT$5.47 billion, or at NT$9.5 per share. Under the agreement, Acer will continue to hold 30% of the ASMI shares. The agreement stipulates that TSMC will manage the newly formed corporation turning it into a dedicated foundry company. As a result, the future president of ASMI will be assigned by TSMC, and the new chairman will be selected from TSMC's four director positions. To position itself as a dedicated foundry, ASMI plans to do a cash offering of NT$8 billion to NT$10 billion in order to purchase new equipment to adjust parts of its operation line to logic-based processes. The company said it expects a monthly capacity for 0.25 and 0.22-micron technologies will be increased to 38,000 eight-inch wafers by the end of 2000.