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

To: StanX Long who wrote (63877)	5/17/2002 2:06:39 AM
From: StanX Long	Read Replies (1) \| Respond to of 70976

UMC's Hsuan - SMIC, Grace Semiconductor no competitors for UMC, TSMC -- AFX European Focus, 5/17/2002 e-insite.net Semiconductor Manufacturing International Corp (SMIC) and Grace Semiconductor Manufacturing Corp, which operate on the Chinese mainland, can hardly expect to become serious competitors of United Microelectronics Corp and Taiwan Semiconductor Manufacturing Co Ltd, UMC CEO John Hsuan said. The two mainland ventures would have to set aside major R&D spending -- something bound to erode their earnings -- if they want to compete with UMC and TSMC on the high-end technology front, Hsuan said in an Economic Daily News report. At the same time, the two mainland ventures would be put at a disadvantage in terms of depreciation costs if the race turns to low-end products, he said. Hsuan said UMC has had a tough time competing with TSMC. While the two require about the same R&D spending, TSMC's sales are double UMC's. "If TSMC's R&D spending accounts for 6.0ct of its sales, the rate for UMC must rise to 12 pct," he said. pw/bmm For more information and to contact AFX: www.afxnews.com and www.afxpress.com