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To: Czechsinthemail who wrote (8037)	7/28/2000 1:42:12 AM
From: DJBEINO	Read Replies (2) \| Respond to of 9582

TSM, UMC to strategically raise wafer foundry prices Taipei, July 27, 2000 (CENS)--Despite the short supply of wafer foundry production capacity, both Taiwan Semiconductor Manufacturing Co. (TSMC) and United Electronics Corp. will strategically raise their wafer foundry prices by about 10%, from the third quarter, sources at local IC design firms said Thursday. Over the past few months, TSMC and UMC were unable to meet hectic wafer market demand due to low production capacities. This, together with international IDM (integrated design manufacturer) orders which swarmed into Taiwan recently, will affect the overall profit margin of small- and medium-sized IC design firms in the second half, industry sources said. TSMC and UMC informed several major IC design firms in Taiwan that the wafer foundry price will be adjusted upward in the third quarter, especially for those new clients and orders placed recently. With a flexible rate, the proposed price hike will reach as high as 10%. The wafer foundry price hike will affect the profit margins of IC design firms, with local IC design firms conceding that their pretax profits would drop somewhat in September and October if TSMC and UMC implement the new wafer foundry prices. Supplies of consumer ICs and PC peripheral ICs will reportedly be in short supply in the coming months. Wafer foundry costs in this regard will increase 5% to 10% once TSMC and UMC raise their wafer foundry prices.