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To: niek who wrote (1667)	3/24/2009 3:00:24 PM
From: niek	2 Recommendations Read Replies (1) \| Respond to of 43091

Top Two Silicon Foundries Said to Downsize Capex Cuts Amid Order Influx Taipei, March 24, 2009 (CENS)--Taiwan Semiconductor Manufacturing Co. (TSMC) will scale down 2009 capital spending cut to 20% from previously planned 50% from 2008 level while United Microelectronics Corp. (UMC) is likely to maintain its 2009 outlay on par with 2008 level of US$350 million or add more, industry watchers estimated. Semiconductor-equipment suppliers estimated TSMC, currently the world`s No.1 silicon-foundry supplier, to cut only 20% of its 2009 capital spending from 2008 level to US$1.5 billion, much more moderate than the company`s originally planned 50%. No.2 player UMC announced recently it would not cut 2009 spending from 2008 level and said its 2009 spending would be confined within US$400 million. The projections came shortly after the two foundries` announcements of suspending unpaid-leave practice from next month, suggesting the two chipmakers` view on market prospective has shifted to "not pessimism" from "pessimism". TSMC projects to depend on 40-nanometer and 45-nanometer processes to contribute around 2% of its revenue next quarter, leading rivals` technology roadmaps by six months or so. Also, the company`s reduction in spending-cut pace is linked to its cooperation with Intel on development of SOC platform for Atom processors. Chip-making equipment suppliers pointed out that TSMC and Intel would develop the platform at TSMC`s 12P4 fabrication factory, whose equipment installations have been suspended since late last year due to the financial crisis. They estimated TSMC to begin tooling the factory soon.