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To: Chi Pan who wrote (5610)	7/28/1999 10:32:00 PM
From: Woody_Nickels	Respond to of 9582

Found this article on UMC on SBN: Taiwan's UMC expects fiscal year revenues to jump 59% with higher foundry prices A service of Semiconductor Business News, CMP Media Inc. Story posted 7 p.m. EST/4 p.m., PST, 7/28/99 By Bolaji Ojo Electronic Buyers' News SAN FRANCISCO -- Taiwan's United Microelectronics Corp. (UMC) said it expects fiscal 1999 revenue to rise as much as 59% driven by the expanding Internet industry, rising consumer electronic sales, and higher PC unit sales, which have helped strengthened silicon foundry prices. Hsinchu-based UMC, the world's second largest pure-play silicon foundry company, said it expects to report 1999 sales of about $1.75 billion soon, compared with a revised figure of about $1.1 billion for the 1998 fiscal year. UMC, which has been reorganizing its operations to consolidate the management of its foundries, said it expects net income for 1999 and 2000 to rise between 40% and 50% over the 1998 period. "We are on track with current estimates," said Jim Kupec, president of United Microelectronics Corp., U.S.A., a subsidiary of the UMC Group, based in Silicon Valley. "Foundry prices have firmed since the end of 1998 and we are seeing strong growth across all sectors of our business." Kupec, who was addressing the BancBoston Robertson Stephens Semiconductor Conference in San Francisco today, said UMC has about $1.6 billion in cash, which the company expects to use to expand capacity to meet rising demand for its services. The company said its strong cash position means it does not have to borrow from the capital market to finance immediate expansion, though it expects to make a statement soon as to whether it will issue American Depositary Receipts by the end of this year. "We are spending a lot of money, as much as $1.3 billion this year, up from $1 billion last year," Kupec said. "Since capacity determines revenue we expect this to continue."