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

To: Gottfried who wrote (31732)	8/5/1999 12:58:00 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 70976

Taiwan Wafer Foundry Operators Expand Capacity as Demand Intensifies August 5, 1999 (TAIPEI) -- Taiwan's wafer foundry operators are raising capital spending this year to expand capacity, as demand for their services intensifies. The newly increased production capacity is widely expected to trigger more fierce competition in the industry, especially between the leading United Microelectronics Corp. (UMC) and Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC). Sources in the industry say that UMC and TSMC are now increasing production faster than leading international giants, such as South Korea's Samsung Electronics Co., Ltd. and Intel Corp. of the United States. TSMC and its subsidiaries could report a wafer output of nearly three million units next year, while UMC Group is likely to produce 2.4 million units. Profit margins for these and other companies in the field are expected to settle at 40 to 45 percent this year. A UMC Group spokesman said his conglomerate would speed production at UMC's fifth fab, and the second fab of United Semiconductor Corp., to increase total output by 30 percent next year. TSMC and its affiliates estimate this year's capital spending at US$1.6 billion, mainly for capacity expansion at its own fifth and sixth fabs, as well as U.S.-based WaferTech's fab. TSMC says that production at its fifth fab could reach 35,000 units next year. TSMC and its wafer units, including WaferTech, Vanguard International Semiconductor Corp., Powerchip Semiconductor Corp. and TSMC-Acer Semiconductor (formerly Acer Semiconductor Manufacturing Inc.), are expected to churn out a total of 2.97 million units next year. For this year, TSMC and WaferTech alone are expected to produce a total of 1.87 million units, up 14 percent from 1998. TSMC-Acer, however, will need some time to adjust to a new manufacturing process, and will not see its effect until next year. (Commercial Times, Taiwan) nikkeibp.asiabiztech.com