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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Dan3 who wrote (170405)	8/30/2002 10:54:30 AM
From: Road Walker	Read Replies (1) \| Respond to of 186894

Motorola alliance to be first in new chip rollout Friday August 30, 8:02 am ET By Wong Choon Mei KUALA LUMPUR, Aug 30 (Reuters) - U.S. based Motorola (NYSE:MOT - News) said on Friday its partnership with two other semiconductor makers will probably be the first to produce a new generation of microchips, beating Intel (NasdaqNM:INTC - News) by at least six months. ADVERTISEMENT Early this week, Motorola, STMicroelectronics (Paris:STM.PA - News) and Philips (Amsterdam:PHG.AS - News) jointly unveiled a design platform to build chips based on 90-nanometer circuitry, versus the current 130-nanometre standard. A nanometre is one-billionth of a meter. Thinner circuitry makes each separate chip cheaper to produce, faster and more energy-efficient. Chris Belden, vice president of Motorola's semiconductor products sector, said the shift into the new generation chip would pave the way for development of more advanced products at cheaper prices. "The significance for us is to provide better systemised chip solutions for our customers," he said. "We have to continue to drive higher and higher levels of productivity in a single chip to reduce costs and increase capability in wireless handsets and other IT products." Belden also said the alliance would start production of a high-performance chip by the fourth quarter of this year and a lower performing version in the third quarter of 2003. "We will start ramping up production of the high-performer in the fourth quarter. That probably would make us the first," Belden told a news conference marking the 30th anniversary of the establishment of Motorola's plant in Kuala Lumpur. Two weeks ago, world number one Intel detailed plans to introduce 90-nanometer technology at its dozen or so plants around the globe by the second half of 2003. Another U.S.-based chipmaker, Advanced Micro Devices (NYSE:AMD - News), and its Taiwanese partner United Microelectronics Corp (Taiwan:2303.TW - News), said they plan to move into tinier circuitry but have declined to give a start date. Motorola and its two partners are among the world's 10 biggest chipmakers, with ST being the third largest. The three focus on chips for consumer electronics, communications and automotives. CUTBACKS Motorola, which earlier this year announced consolidation plans aimed at cutting costs, will retain manufacturing bases only in Malaysia and Tianjin, China, Belden said. Motorola Senior Adviser P.Y. Lai told Reuters on Thursday the U.S. based firm planned to raise its investment in China in the next few years. The company has so far spent $3.4 billion in the world's most populous market. Lai had also said Western tech firms should invest in one other country apart from China so as to spread the business risks.