Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: unclewest who wrote (22720)	6/16/1999 10:54:00 PM
From: REH	Respond to of 93625

Anam Still Suffers From Lack Of Capital Jun 16, 1999 (Tech Web - CMP via COMTEX) -- Although Anam Semiconductor's debt-restructuring plan has been completed, the company's ability to accelerate its foundry andchip-package assembling efforts continue to be restrained by a lack of capital. As a result, thecompany is seeking a partner to facilitate the expansion. Anam, the manufacturing affiliate of Amkor Technology, is anxious to grow its foundry operation, which is dedicated to producing DSPs for Texas Instruments, said Jung-Ihl Kim, executive vice president and general manager of the semiconductor package operation, in an interview at Anam's headquarters in Seoul. "We would like to diversify our customer base and include companies other than TI," Kim said. The company is slowly recovering from its massive debt load, and by the end of the year, expects its debt-to-equity ratio to fall to 200 percent from more than 1,000 percent, before the debt-restructuring plan had been implemented. Dallas-based TI is among the companies that are said to be interested in investing in a possible joint venture with Anam, Kim said. The company said it expects to announce it has secured a U.S. investor by October. "All things are being considered," Kim said. Anam's 8-inch-wafer fab based in Buchon, Korea, is outfitted with TI's 0.35- and 0.25-micron manufacturing processes. TI can claim up to 70 percent of the fab's output, and is obligated to use at least 40 percent. Strong DSP demand, though, is keeping the fab running at full capacity for TI. "Other companies are interested in using Anam's fab," Kim said. Anam's plan to boost its foundry business is part of the company's objective to provide both front-end and back-end services for chip makers. Limited investment in its chip-assembly business has constrained supply of certain package types, including micro BGA, plastic BGA, and TQFP that house several non-memory products, Kim said. "Customers are on allocation," Kim said. "But the purchasing order has been placed to expand capacity." Meanwhile, Anam is in discussions with several DRAM vendors to handle their Direct RDRAM chip-scale packaging. Kim reported that Anam is talking with three or four DRAM companies, which are exploring outsourcing the Direct Rambus chip assembly rather than making the costly investment in back-end CSP equipment. However, Kim said the memory companies that have been talking with Anam so far are waiting on the Direct Rambus market to develop before committing to outsourcing contracts. As a result, Anam is taking a cautious approach to its capital investment plan, as well. "Frankly, we are not so rushed to make our own investment in extra equipment until we get orders," Kim said. Anam is also developing a new wafer-scale CSP approach officials said they believe could sharply reduce Direct RDRAM packaging costs. Byoung Youl Min, vice president and head of the Anam R&D Center, said wafer-scale packaging would allow wire bonding of all chips on the wafer before they are cut apart. "This could be a big savings, because wire bonding is much less expensive than CSP lead bonding of individual die," he said.