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 : The New Qualcomm - a S&P500 company -- Ignore unavailable to you. Want to Upgrade?

To: Dennis Roth who wrote (4839)	1/5/2000 11:52:00 AM
From: gdichaz	Read Replies (1) \| Respond to of 13582

Dennis: Agree. Again the Q's management deserves all the kudos they get. Dr J and his team seem to combine vision, flexibility and depth in research with traditional management skills like ability to shift from infrastructure and from handsets with amazingly good timing while achieving their primary objectives while doing so. The infrastructure shift out brought "peace" [shaky at times of course] with Ericsson. The handset shift out brought CDMA data opportunity in - particularly by solidifying a solid base in Japan for CDMA data (with voice) and even in Korea with the KYO joint venture there. But also KYO is a force to be reckoned with in China and the rest of Asia, and also South America (from a Brazil base). Then last North America - all three countries - Mexico, the US, and Canada. All this and satellites too. Bravo performance. Best. Chaz

To: Dennis Roth who wrote (4839)	1/5/2000 5:09:00 PM
From: Ruffian	Respond to of 13582

TSMC buys out Acer fab By Mark Carroll EE Times (01/05/00, 2:51 p.m. EDT) HSINCHU, Taiwan — Taiwan Semiconductor Manufacturing Co. and TSMC-Acer Manufacturing Corp. (TASMC) will complete the merger they began six months ago by June 30, the companies said. Last June, TSMC acquired 30 percent of the shares of Acer Semiconductor Manufacturing Inc. from the Acer Group, later renaming the facility TASMC. Acer Group remained as the largest and most significant shareholder in TASMC. Since June, TSMC has essentially taken over management of the manufacturing facility, turning it into a pure-play foundry. "TASMC has successfully re-engineered at a time when market demand for IC foundry services has grown at a rapid pace," said TSMC chairman Morris Chang. "The merger of TSMC and TASMC will further improve operational efficiency through integration, enabling more timely service to our customers." The exchange ratio for the transaction — roughly six shares of TASMC stock for one share of TSMC stock — will be adjusted in a limited range according to TSMC's stock price. "The range is between 5.5 to 6.5 shares of TASMC per share of TSMC," said a TSMC spokesman. 'Collar' deal Harvey Chang, TSMC's senior vice president of finance, explained that the exchange ratio was based on the net worth per share and future earning prospects of TASMC. To protect shareholder interests, the partners employed the "collar mechanism," a financial arrangement often applied in mergers here that specifies the inclusion of several conditions in the merger agreement that let the exchange ratio be adjusted to account for stock-price fluctuations before the transaction closes. The exchange ratio will be finalized by end of March, before the stockholders' meetings of both companies. An Acer executive said the current total market capital of TASMC is about $774 million. That means that TSMC is acquiring the other 70 percent of TASMC for about $90 million in TSMC stock. In return for the stock, TSMC gets immediate access to more than 40,000 production wafers per month. "TASMC is a bit of an old fab now," said the TSMC spokes-man. "But there is clean room space available for us to install new equipment." The deal will leave Acer with somewhat less than a 2 percent stake in TSMC. Acer officials said the move will free the company to concentrate on its core strengths. "With this merger, TSMC will be the most reliable manufacturing service source for Acer in the future," said Acer chairman Stan Shih. "Acer Group's competitive advantages lie in its brand management strength, extensive global sales and marketing network, and system implementation and IC design. After the merger between TSMC and TASMC, Acer can concentrate on aggressively developing its PC, peripherals and key components business and exploring opportunities in intellectual property and digital service." Shih added that Acer will "focus on reinforcing its IC design innovation to create new market demand for IC products. We will work closely with TSMC to leverage each other's strengths." According to government regulations, the merger is subject to the approval of regulatory authorities. It must be completed after each company's stockholders' meeting.