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To: DJBEINO who wrote (7051)	3/7/2000 10:52:00 AM
From: DJBEINO	Read Replies (1) \| Respond to of 9582

UMC, TSMC to announce advanced chip processing technologies soon Taipei, Mar. 6, 2000 (CENS)--United Microelectronics Corp. (UMC) and Taiwan Semiconductor Manufacturing Co. (TSMC) will both introduce 0.13-micron processing technology at year-end and early next year, respectively. The technology is forecast to greatly boost the two companies ' revenue. TSMC and UMC are the world's largest and second-largest IC foundry providers, respectively. Local industry analysts estimate that the two companies will increase their earnings faster than capacity over the upcoming three years, chiefly due to the improvement of their processing technology. TSMC is forecast to have a production capacity of 3.4 million eight-inch equivalent silicon wafers this year, 4.6 million wafers next year, and 5.6 million wafers in 2002 thanks to its combination with Acer Semiconductor Corp. last year and Worldwide Semiconductor Manufacturing Corp. early this year. UMC, which merged with four of its affiliates last year, is estimated to report an annual capacity of 2.4 million eight-inch equivalent wafers this year, 3.2 million wafers next year, and four million wafers in 2002. Local analysts attribute the two companies' hefty earning growth to burgeoning demand and the improvement of their processing technology. TSMC Chairman Morris Chang noted that his company's foundry capacity will fall far short of demand in the years to come despite its efforts to expand output. He said that his company expects to receive contracts for 5.25 million wafers this year and 5.9 million wafers next year. The demand, he stressed, will be even higher in 2002. Local market analysts observe that high demand will push up the price of specialized contract services. Price hikes should, however, remain in an acceptable range due to the increasing number of new entrants in this field. The advanced 0.13-micron technology allows more chips to be squeezed onto each wafer, thus slashing production costs and boosting the profits of chipmakers. TSMC said it expects to commercialize its 0.13-micron technology in the first quarter next year. A UMC senior official noted that his company will roll out 0.15-micron technology this month and 0.13-micron technology at year-end. Market analysts here point out that the technological capabilities of the two companies' rivals that of Intel's and exceeds the progress schedule set by the Semiconductor Industry Association (SIA) of the United States. UMC estimates that its earning ratio will leap by 40% next year, due in part to the introduction of its 0.13-micron processing technology.