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

To: Proud_Infidel who wrote (33407)	12/2/1999 11:18:00 AM
From: Proud_Infidel	Read Replies (1) \| Respond to of 70976

IC Investment Rush Won't Hurt Funding in Other Sectors December 2, 1999 (TAIPEI) -- A report released by the Industrial Technology Research Institute (ITRI) says that Taiwan's investors' enthusiasm for IC manufacturing is not expected to result in fund shortages in other sectors. However, ITRI does warn against a possible staffing problem. When the semiconductor industry booms it often attracts professionals and drains other sectors of personnel. Taiwan has witnessed a rush in IC investment since the Tainan Science-based Industrial Park was established in 1997. By 2007, NT$1.6 trillion worth of funds are expected to have flowed into the sector, representing an average NT$160 billion investment over each of the ten years. Because Taiwan's high-tech industry sees an average annual investment of NT$380 billion, the IC investment craze is unlikely to kindle funding problems for other sectors, according to the institute. (NT$31.67 = US$1) ITRI analysts said that local IC companies typically acquire 12 percent of their funds from foreign providers, which means they are not competing against other sectors for local fund-raising channels. Among semiconductor makers, about 17.2 percent resort to issuing depositary receipts in other countries. During the last two years, for example, Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC) and Winbond Electronics Corp. have issued Global Depositary Receipts (GDRs), and TSMC and Macronix International Co., Ltd. have issued American Depositary Receipts (ADRs). Analysts say that about 25 percent of engineers and R&D personnel in the semiconductor industry will see a 10 percent to 15 percent pay increase during the business boom, which will attract substantial attraction among other professionals. Analysts said that when the semiconductor sector performs well, more than half of local companies will see resignation rates rise by six to eight percent. (Commercial Times, Taiwan)