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

To: etchmeister who wrote (16902)	12/20/2005 8:14:13 AM
From: Proud_Infidel	Respond to of 25522

2006 capex may rise for TSMC and UMC Cage Chao and Hans Wu, Taipei; Rodney Chan, DigiTimes.com [Tuesday 20 December 2005] Sources with semiconductor equipment makers expect Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectronics Corporation (UMC), the world’s top two pure-play foundries, to increase their capital expenditure (capex) for 2006 on strong demand for 90nm process production and mounting competition for 65nm process production. The sources revealed that the two foundries are planning to expand their production facilities for 90nm processes, as demand has been increasing faster than expected. With TSMC and UMC facing mounting competition in 65nm process production from other foundries, they are likely to increase their capex next year for expansion projects, the sources said. Taiwan DRAM makers, on the other hand, are expected to schedule capex budgets that are flat or slightly down from this year. Powerchip Semiconductor Corporation (PSC) spokesman Eric Tang said the company’s 2005 capex is about US$1 billion, most of which has been used to expand its 12-inch 12B Fab’s capacity to 25,000 wafers. Tang said that in 2006 PSC will allocate about US$500 million to further expand 12B Fab’s capacity to 40,000 wafers. PSC currently runs three fabs – the 8-inch 8A Fab, and the 12-inch 12A and 12B Fabs, and it has plans to construct a new 12-inch plant, which the company calls the 12C Fab. Tang said for 2006, construction of the 12C Fab will need funding only for the plant’s land and structure, an amount that is relatively small. Nanya Technology spokesman Pei-lin Pai said the company’s capex for 2006 will be similar to that for 2005. As Nanya’s project to build its first 12-inch fab will see only architectural construction next year, not much funding will be needed, Pai said, adding that most of the 2006 capex will be spent on maintaining the company’s two 8-inch fabs. ProMOS Technologies spokesman Ben Tseng said the company’s capex may increase a bit to US$700 million for 2006, compared to US$659 million for 2005. The capex next year will be mostly used to increase capacity at its 12-inch fab to 30,000 wafers by the second half of 2006. A recent report from Merrill Lynch stated it considered the expected capex from DRAM makers’ to be at healthy levels.