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To: The Ox who wrote (9489)	2/7/2001 8:38:12 PM
From: The Ox	Respond to of 10921

siliconstrategies.com TSMC cuts over $1 billion from 2001 capital spending plans World's largest silicon foundry not expects to spend $2.7 bilion on expansion this year Semiconductor Business News (02/07/01 16:27 p.m. PST) HSINCHU, Taiwan -- Faced with a slowdown in silicon foundry growth, Taiwan Semiconductor Manufacturing Co. Ltd. here has cut more than $1 billion from its planned capital expenditures in 2001. TSMC said it has lowered 2001 capital spending plans to $2.7 billion from a previous estimate of $3.8 billion. In 2000, the world's largest chip foundry spent about $3.9 billion of its own funds on expanding its capacity. Last year, the company also invested $1.1 billion from TSMC affiliates. The Hsinchu-based foundry company also said it was planning to reduce expansion of wafer-processing capacity in 2001. Planned capacity has been lowered 6% to 4.5 million eight-inch equivalent wafers from a previous target of 4.8 million this year, said the company while posting its fourth-quarter results. Compared to last year, TSMC will increase its total chip-production capacity by 33% from 3.4 million eight-inch equivalent wafers in 2000. TSMC increased its capacity in 2000 by 80% over 1999 levels. TSMC on Tuesday posted net sales of NT$53.82 billion ($1.67 billion) in the fourth quarter, including NT$7.0 billion) from joint ventures. TSMC's sales grew 127% from NT23.7 billion in the fourth quarter of 1999, but Q4 revenues were up sequentially by 13% from $NT47.49 billion in the third quarter. The company's net income reached a quarterly record at NT$21.47 billion ($667 million). While releasing its Q4 results, TSMC told investors that the company expected weak earnings in the first quarter of 2001. The current foundry slump is expected to hit bottom in March or April, according to company chairman Morris Chang (see Feb. 6 story). In Q4 2000, TSMC's wafer fabs were operating at 105% capacity, down slightly from 107% in the prior third quarter. The company's shipments crossed the 1 million wafer mark for the first time in the fourth quarter, with about half of the substrates being used for 0.25- and 0.18-micron processes. TSMC is now constructing two new 300-mm wafer facilities--one in Hsinchu and the other in Tainan, located in southern Taiwan. TSMC's Fab 12 in Hsinchu is now slated to begin processing wafers in the fourth quarter of 2001. The company's revised capacity schedule shows that plant with the capacity to fabricate 3,000 wafers in 2001. In December, Fab 12 is planned to have capacity for 2,000 wafer starts a month, according to TSMC. Last month, a spokesman for foundry giant denied reports that it was scaling back 300-mm investments due to the softening of business conditions.