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Technology Stocks : Alliance Semiconductor -- Ignore unavailable to you. Want to Upgrade?

To: DJBEINO who wrote (9316)	5/5/2001 10:44:53 AM
From: DJBEINO	Respond to of 9582

UMC forms China alliance, denies chip-making reports CHIPS: Although the company says it's toeing the government line by not mass producing in China, UMC is forming partnerships with other Tawan firms in China BLOOMBERG TAIPEI United Microelectronics Corp (UMC, Áp¹q) denied reports it's gearing up to begin chip production in China, though it confirmed an alliance with another Taiwan company whose main production is on the mainland. UMC and its rival, Taiwan Semiconductor Manufacturing Corp (TSMC, ¥x¿n¹q), are prohibited from investing in the mainland under Taiwan government rules aimed at withholding the island's highest technology from its political rival. TSMC has been less coy than UMC in its anticipation that the ban may be lifted soon and the door flung open to the world's largest market. "UMC and Taiwan Semiconductor Manufacturing Co. have a high interest in going to China," said Steven Hsieh, who manages NT$2.8 billion in Taiwan stocks at Dresdner Asset Management Taiwan. Until restrictions are lifted, he said, "they'll form strategic alliances with Taiwanese and foreign companies in China." UMC affiliate World Wiser Electronics Inc (ªY¿³) said yesterday it is buying three circuit board makers, including one in which Hon Hai Precision Industry Co (ÂE®üºë±K) has a stake. World Wiser said it would pay NT$36.4 billion (US1.1 billion) to buy rivals Unicap Electronics Industrial Corp (Ä£¤å), Bestmult Industry Co («í·~) and UniMicron Technology Inc (¸sµ¦). That creates the opportunity for cooperation between Hon Hai and UMC, said Edmund Ding, a Hon Hai spokesman. Hon Hai is Taiwan's largest maker of computer connectors and cases, and most of its production is in China. "We are downstream computer parts makers, and UMC is an upstream chipmaker," Ding said. "The potential is there at a later stage for a kind of vertical integration." UMC denied an Economic Daily report that Hon Hai, Xilinx Inc (´¼ÀM) and UMC would team up to begin chip production in China. San Jose-based Xilinx Inc is the biggest producer of programmable semiconductors and one of UMC's largest customers. Taiwan's China-investment policy limits individual mainland investments to US$50 million and prohibits technology investments in notebook assembly and chip plants. The policy has allowed makers of computer components to build plants on the mainland, while barring the island's two biggest technology companies from doing business there. TSMC Chairman Morris Chang (±i©¾¿Ñ) is expected to join former Taiwan Premier Vincent Siew (¿½¸Uªø) and a group of business leaders on a tour of cities in China soon. However, TSMC's official position is that it has no plans to invest in China. "China should be one of those locations we would consider as the next place we want to invest in if the government allowed it," said Tzeng Jin-hao (´¿®Êµq), a company spokesman. Taiwan's Mainland Affairs Council (³°©e·\|) recommended to the Cabinet at the end of March that restrictions on China investments be eased. The Cabinet was expected to announce its decision this month, though that has been delayed at least until June. "From a business perspective, TSMC and UMC should be focusing on the China market," Hsieh said. "That doesn't mean they'll go over straight away, but they may use a passive strategy to tap into the market." taipeitimes.com +++++++++++ UMC, TSMC mull Tainan withdrawal RATTLE AND ROLL: Two of the nation's semiconductor firms say they will withdraw from the industrial park if the issue of vibrations from a nearby high-speed railway is not resolved promptly taipeitimes.com