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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (9998)	5/25/2004 10:24:13 AM
From: Kirk ©	Read Replies (1) \| Respond to of 25522

TSMC seeks capacity from competing foundries Samson Yu, Taipei; Jack Lu, DigiTimes.com Tuesday 25 May 2004 digitimes.com In addition to seeking capacity from other foundries in Taiwan, Taiwan Semiconductor Manufacturing Company (TSMC) is negotiating capacity support from foundries in Southeast Asia in order to meet demand for mature processes, according to sources. With its capacity running flat out, TSMC’s capacity may fall short of demand by 500,000 wafers this year, sources at IC design houses estimated. Among all applications, LCD driver ICs has the most urgent need for capacity, the sources noted. Taiwan-based Vanguard International Semiconductor (VIS) is already supporting TSMC for 25,000 wafers per month. However, TSMC still needs more. To resolve the situation, TSMC hopes to outsource chip production to other foundries that offer TSMC-like processes. In addition, TSMC plans to assist these foundries in modifying their processes to meet customer requirements and it hopes to receive competitive pricing in return, foundry sources said. However, sources said the negotiation might not be progressing well as the competing foundries are already enjoying robust orders and are becoming less flexible in pricing. ============================================================ There sure is a disconnect between supply/demand and prices for capital equipment vendors. Chart of TSM & Intel Earnings vs AMAT, LRCX and others: suite101.com Kirk