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Technology Stocks : UMC - The World's No. 2 Chipmaker -- Ignore unavailable to you. Want to Upgrade?

To: Daskin who wrote (5)	9/28/2000 3:24:22 PM
From: DJBEINO	Respond to of 22

Japan to boost purchases of Taiwan-made semiconductors Taipei, Sept. 27, 2000 (CENS)--Taiwan's semiconductor suppliers stand to make massive gains as more leading Japanese companies plan to boost their outsourcing procurements. The trend is expected to keep leading Taiwan suppliers like Winbond Electronics, Taiwan Semiconductor Mfg., and United Microelectronics fully loaded with orders till 2002. Japan's third largest IC company Hitachi announced on Wednesday it will double the ratio of OEM orders within three years, to lower operating costs and capital investment. The company currently procures less than 10% of all its semiconductors from other companies, but the ratio of procurements will be increased to 20% within two to three years. Toshiba has adopted the same strategy. It announced a plan last month to assign production of half of its DRAM chips to Taiwan's Winbond Electronics in five years. Winbond now supplies 25% of the chips to Toshiba. Other Japanese companies that have already established firm business ties with Taiwanese partners include NCE, Fujitsu, and Mitsubishi. Continuously rising manufacturing costs and capital investment have prompted Japanese companies to increase orders for high-quality information technology (IT) products with competitive prices from Taiwan through their international procurement offices (IPOs) set up on the island. The rapid establishment of global logistics supply centers by Taiwanese companies is also another reason why Japanese companies are relying more and more on suppliers in Taiwan