Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Texas Instruments - Good buy now or should we wait? -- Ignore unavailable to you. Want to Upgrade?

To: TREND1 who wrote (3155)	3/4/1998 8:50:00 AM
From: yousef hashmi	Read Replies (1) \| Respond to of 6180

Wednesday March 4, 4:52 am Eastern Time Texas Instruments to sell Acer all TI-Acer stake TAIPEI, March 4 (Reuters) - U.S.-based Texas Instruments (TXN - news) and local computer giant Acer Inc (2306.TW) on Wednesday announced that TI will sell all its stakes in Texas Instrument-Acer Inc to Acer. Under the agreement, Acer will continue to run the current operations of TI-Acer, which will be renamed Acer Semiconductor Manufacturing Inc, Acer said in a statement. TI currently holds a 33.34-percent stake in TI-Acer, a joint venture set up by TI and Acer in 1989. Acer did not reveal the cost of its acquisition. Local press said the current share price of the unlisted TI-Acer is T$34-35 per share. TI and the renamed company will share patent rights on semiconductor products for 10 years and the new firm will be able to conduct original equipment manufacturing production for other firms in addition to making its own products, Acer said. Acer group chairman Stan Shih said the decision will ''help push Acer to a new generation of wafer fabrication development.'' TI-Acer has a six-inch and an eight-inch wafer plant, producing dynamic random access memory (DRAM) chips. Shih said that after the management transfer is complete, Acer will fully integrate its IC capabilities in design, manufacturing, marketing, testing and packaging to form a full scale semiconductor business. TI will continue to transfer the latest DRAM technology to the new firm and has committed to purchasing all DRAM produced by the new firm for a year, Shih said. ''But the new firm will not limit its production to DRAM. It will also diversify product line starting from the manufacture of logic ICs,'' Shih said. He added that 30 to 40 percent of the new firm's production volume will support Acer's personal computer manufacturing, components and operations. ''DRAM price fluctuations and TI-Acer's current single technology source, single customer base business operation made this venture too risky for TI-Acer,'' Shih said. DRAM prices dropped drastically in 1997, resulting in huge losses for TI-Acer. TI-Acer currently has a paid-in capital of T$141.25 billion (US$441.4 million). Before the sale, Acer Inc held 48.75 percent of the shares, TI owned 33.34 percent, China Development Corp (2804.TW) held 14.29 percent and the rest was held by the Chiao Tung Bank (2824.TW). More Quotes and News: Texas Instruments Inc (NYSE:TXN - news) Related News Categories: US Market News Help