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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Gottfried who wrote (62771)	4/8/2002 5:22:50 PM
From: Fred Levine	Read Replies (1) \| Respond to of 70976

HSINCHU, Taiwan -- In a move to boost its overall silicon foundry capacity, Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) here has reportedly ordered $200 million worth of 200-mm chip-equipment from Applied Materials Inc., according to sources in the industry. Sources believe that TSMC is ordering undisclosed 200-mm tools from Applied Materials in an effort to double its copper-interconnect foundry capacity. Other chip-equipment makers, reportedly including ASML, KLA-Tencor, Novellus, and Rudolph Technologies, have or will receive orders from TSMC as well, according to analysts. Strangely, though, the foundry giant continues to order and install 200-mm tools at a time when the company is hyping its 300-mm fabs and technology. A spokesman for TSMC declined to comment on the equipment orders, but noted the Taiwanese company is expanding both its 200- and 300-mm fab capacities in order to meet demand for its foundry services. TSMC is in the process of upgrading some of its older-generation capacity with more advanced 200-mm tools, according to the TSMC spokesman. "We do plan to purchase some advanced 8-inch equipment in the coming future," the spokesman said. "The reason why we are doing so is to quickly increase our high-end, 0.15- and 0.13-micron process capacity," the spokesman said. "In the mean time, we will keep ramping up our 12-inch fab with the most advanced technology," the spokesman added. The orders from TSMC are welcomed news by Applied and other chip-equipment vendors, which have been hit hard by the current and severe IC downturn. A spokesman for Applied declined to comment on the orders from TSMC. Meanwhile, the reported equipment procurement also follows TSMC's recent disclosure that the company would boost its overall capital spending for 2002. TSMC, the largest pure-play foundry, is set to boost its capex this year to $2.57 billion, 56% more than the $1.65 billion target forecast several months ago. In 2001, the company spent $2.2 billion (see March 28 story ). TSMC and its rival, United Microelectronics Corp., said that demand for chips used in PCs and other products are picking up, resulting in higher utilization rates (see March 11 story ). TSMC appears to have the most momentum in the foundry market. The company's leading-edge foundry capacity is nearly sold out following a surge of orders from ATI, Nvidia, Via and other customers. To meet demand, TSMC is bolstering its fab capacity by reportedly inserting the new, advanced 200-mm tools from Applied in its Fab 6B plant in Hsinchu, the space where the company originally had a 300-mm pilot line. The pilot line is being moved to Fab 12, a 300-mm production plant in the southern Taiwan city of Tainan, according to sources. TSMC's U.S. subsidiary, WaferTech LLC in Camus,Wash., is also getting new 200-mm tools to fill out its capacity, according to sources. WaferTech is primarily making chips on a foundry basis for Nvidia, sources said. fred