To: Proud_Infidel who wrote (10084 ) 6/3/2004 7:58:39 AM From: Proud_Infidel Read Replies (2) | Respond to of 25522 Taiwan chip giant TSMC upbeat on global chip industry Thursday June 3, 4:55 am ET TAIPEI, Taiwan (AP) -- The chairman of the world's largest contract chipmaker said Thursday the global chip industry is expected to grow 30 percent this year and that 2005 also looks strong. Morris Chang, chief of Taiwan Semiconductor Manufacturing Co., said the increased demand will put extra pressure on his company to introduce products quicker and develop better ways to make chips. Taiwan Semiconductor is one of the global tech industry's most important companies because it makes a wide variety of chips for a long list of major corporations, including Motorola Corp. and Texas Instruments Inc. Chang said his firm would be a technology leader by making more powerful chips with 65-nanometer technology. A chip's transistor components and the spaces between them are measured in nanometers. Reducing the size of the tiny components and connections on chips allows them to perform faster and consume less power. The industry average now is 180 nanometers, with 90 nanometers the best level for mass-produced chips. Chang said his company hopes to produce the 65-nanometer technology by late 2006 or early 2007, with 45-nanometer technology following about two years later. He said the chip sector will face many challenges as the technology industry focuses more on consumer products that emphasize mobility. Product life cycles will likely be shorter, while variety will increase in importance and the pressure to get products to market will increase, Chang said. "TSMC plans to broaden its technology offerings," Chang said.