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To: James Petersen who wrote (7661)	6/6/2000 3:27:00 PM
From: DJBEINO	Respond to of 9582

TSMC, UMC may win microprocessor order from AMD of U.S. Taipei, June 5, 2000 (CENS)--A top executive of Advanced Micro Devices, Inc. of the U.S. on Monday, said AMD will consider allocating contract orders to Taiwan Semiconductor Mfg. Co. and United Microelectronics Corp. after he called on leaders of the two companies. Hector de J. Ruiz, president of ADM, was in Taipei to unveil the company's new Athlon and Duron processors at the Computex Taipei computer show. He also took time to call on senior executives of the two leading foundry service providers. Executives of AMD confirmed that they will consider farming out more contract orders, including advanced chipsets and Internet-related products, to outside companies. AMD also plans to change a former strategy to assign the production of its microprocessors to Taiwan's semiconductor companies if they can guarantee steady production capacity. The move reflects the growing trend of international IDM (integrated device manufactures) of assigning more of their production to outside companies. Both TSMC and UMC have developed manufacturing processes up to the standards set by the Semiconductor Industry Association of the U.S. While TSMC has already started manufacturing microprocessors for National Semiconductor of the U.S. and Via Technologies of Taiwan, UMC has been producing the products for RISE. Both companies have accumulated valuable experience in producing microprocessors for information technology products in recent years as they maintain an accelerated pace to boost their production capacity.