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

To: Terry D who wrote (34277)	2/16/2000 5:35:00 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 70976

Taiwanese chipmakers soar on strong demand By Reuters Special to CNET News.com February 14, 2000, 9:05 a.m. PT TAIPEI, Taiwan--Taiwan's top computer chipmakers reported another batch of strong numbers today as sizzling demand kept production lines humming at full capacity, and analysts said their stocks looked a bargain at current levels. Taiwan Semiconductor Manufacturing Co., the world's top dedicated producer of made-to-order microchips, reported record monthly sales of T$9.327 billion (U.S. $304 million), up 142 percent from T$3.845 billion in January 1999. It was the fourth monthly record for sales in as many months. January sales were up 8.2 percent from December. Separately, United Microelectronics Corp, second to TSMC in the niche foundry business, reported January sales of T$6.085 billion, up 174 percent from T$2.221 billion a year earlier. United Micro also said 1999 net profit soared 138 percent to T$10.498 billion on sales of T$29.147 billion. Analysts said the strong figures provided fresh evidence of a continuing boom in the semiconductor industry, although United Micro's January figures also reflected a takeover of several subsidiaries, effective on Jan. 1. "It's roughly in line with market expectations. At this point what the market will be looking for is month-on-month results," Daniel Heyler, Taipei-based regional technology analyst at Merrill Lynch, said of United Micro's figures. Heyler also said TSMC's results showed "fantastic execution" given the lack of capacity. "Now that we have consolidated results for United Micro, people will be looking for similar performance so the pressure is really on," he said. As more integrated design manufacturers--companies known for building products from top to bottom such as IBM and Motorola --turn to TSMC and United Micro for custom-made chips, the outlook seems bright, analysts said. Story Copyright © 2000 Reuters Limited. All rights reserved.