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 : Lam Research (LRCX, NASDAQ): To the Insiders -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (3809)	1/7/2000 9:53:00 AM
From: Proud_Infidel	Respond to of 5867

TSMC will acquire WSMC to increase foundry capacity Semiconductor Business News (01/07/00, 08:50:09 AM EDT) HSINCHU, Taiwan--Taiwan Semiconductor Manufacturing Co. here today announced plans to acquire and adsorb Worldwide Semiconductor Manufacturing Corp., the third largest silicon foundry company in Taiwan. TSMC's merger agreement with WSMC comes one week after the foundry giant announced it would acquire full ownership of Acer Group's chip processing subsidiary, which has been operating as a joint venture with TSMC since the middle of 1999. Once TSMC absorbs both WSMC and the TSMC-Acer Manufacturing Corp. joint venture, the company will increase its chip-processing capacity from 2.8 million 8-inch equivalent wafers to about 3.4 million, said Morris Chang, chairman of TSMC. "The worldwide demand for IC foundry capacity has steadily and strongly increased for some time," Chang said. "In response, TSMC is aggressively building our capacity through our own expansion programs and by carefully selecting opportunities to cooperate with companies that share our values." Chang said various "collaborative models" in the expansion include mergers and acquisitions, joint ventures and strategic alliances. A key objective for TSMC is to maintain its status as the world's largest pure-play silicon foundry as cross town rival, United Microelectronics Corp. (UMC), mounts a serious challenge for market share. UMC had been rumored as negotiating with WSMC for a merger agreement, but company officials refused to say whether or not Taiwan's No.2 foundry company was attempting to buy WSMC. Last week, UMC announced a joint venture with Hitachi Ltd. to set up a 300-mm wafer processing plant in Japan as part of its expansion of capacity. To expand its capacity, TSMC has agreed to acquire four-year-old WSMC buy swapping stock. Two shares of WSMC will be exchanged for two shares of TSMC stock. The merger is expected to be completed by June 30. Officials said WSMC operates as a dedicated IC foundry in the same manner as TSMC. Currently, WSMC operates an 8-inch wafer fab, using 0.25- and 0.18-micron process technologies. Production in a second 8-inch fab is expected to begin in March. WSMC's total annual capacity for both fabs should reach 400,000 eight-inch wafers in 2000, and it is expected to reach 760,000 wafers in 2001, according to TSMC. WSMC's registered capital is estimated at NT$17 billion ($548 million). The company's major shareholders include Taiwan chip maker Winbond (13.24%), China Development Industrial Bank (11.52%), China Steel (8.34%), and Syntek Semiconductor Co. (3.59%).