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To: DJBEINO who wrote (7042)	3/6/2000 10:20:00 AM
From: DJBEINO	Respond to of 9582

UMC Works to Boost Its Wafer-Foundry Profile Overseas March 6, 2000 (TAIPEI) -- United Microelectronics Corp. (UMC) is set to team up with U.S. and Japanese partners to develop state-of-the-art technologies for its wafer lines. It also will work to raise its wafer-foundry profile in the Japanese market. These goals are part of UMC's efforts to fortify itself against its arch-rival Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC). F.T. Liu, a senior UMC executive, believed that in the next few years the strategy would enable his company to expand its capacity by over 30 percent a year, and improve its profitability by over 40 percent a year. UMC also plans to upgrade its wafer-manufacturing skills beyond the capabilities of integrated device manufacturers (IDMs). The local chip-making powerhouse announced early this year technological partnerships with IBM Corp. and Germany's Infineon Technologies AG , to develop mutually-compatible technical platforms as a springboard for the three companies to expand their presence in the global system-on-a-chip market. UMC is also exploring partnership opportunities with a number of U.S.-based IC-designing companies, to exploit the soaring demand for wafer-foundry services from Japan and Europe. In a successful effort to gain a foothold in Japan's microelectronics market, UMC has taken over NPNX, a Japan-based semiconductor manufacturer, and renamed it Nippon Foundry Inc. UMC has also joined Hitachi Ltd. in a 12-inch wafer fab venture. "Orders from Japan have increased by over 10 percent recently," Liu said. "Japan IDMs are willing to contract out more OEM orders to our company, which enables us to improve our market share there." nikkeibp.asiabiztech.com

To: DJBEINO who wrote (7042)	3/6/2000 10:22:00 AM
From: DJBEINO	Read Replies (1) \| Respond to of 9582

World DRAM Market to Grow 25 Pct. in 2000: Nikkei Survey March 6, 2000 (TOKYO) -- The global market for DRAM microchips will likely expand 25.4 percent from a year ago to US$27.58 billion in 2000, marking the second consecutive year of increase, according to a survey conducted by Nikkei Market Access. If this total is reached, it will be the second highest level since 1995, when it posted a record high. The continuing expansion of the DRAM market in recent years is due mainly to a steady increase in sales of personal computers. However, the survey warns that the market could see its growth slow down in 2001 and later, unless DRAMs are used for products other than PCs as main memory devices. In 1996, DRAM prices nosedived, sending the ratio of the cost of DRAMs to the entire PC cost to below 10 percent, compared with 10 percent to 20 percent in 1995 and before. Industry observers say there is no sign that the ratio could turn up again. If not, the expansion of the DRAM market will be limited by the growth of the PC market, the survey said. Production of DRAMs in 2000 will be dominated by four companies -- Micron Technology Inc. of the United States, Samsung Electronics Co., Ltd. and Hyundai Electronics Industries Co., Ltd., both in Korea, and Infineon Technologies AG of Germany, with a total estimated 70 percent market share in terms of numbers of bits. By contrast, the combined world share of Japanese makers will drop from some 47 percent in 1995 to around 25 percent in 2000, as they are shifting the target of their production from DRAMs to SRAM microchips. SRAMs are mainly used in cellular phones, flash memories and logic ICs for consumer digital appliances. nikkeibp.asiabiztech.com