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

To: Charlie Smith who wrote (3703)	6/5/1998 11:35:00 AM
From: pat mudge	Read Replies (2) \| Respond to of 6180

TI gets out of ACER: <<< Taiwan's China Development to buy TI-Acer stake June 5, 1998 08:23 AM By Alice Hung TAIPEI, June 5 (Reuters) - Taiwan venture capital giant China Development Corp said on Friday it would invest T$2.186 billion in a money-losing microchip maker, citing the industry's strong long-term potential. China Development said it would buy a T$659 million stake in TI-Acer Inc , a joint venture of U.S.-based Texas Instruments TXN and Taiwan's leading computer maker Acer Inc . China Development already holds a minority interest in TI-Acer. China Development would invest an additional T$1.527 billion in TI-Acer through a rights issue, bringing its total investment to T$2.186 billion, it said in a statement. Further details of the transaction were not available. Texas Instruments, which holds 33.34 percent of TI-Acer, said on March 4 that it would sell out its stake to Acer, but did not say when the selloff would be completed. China Development said it would buy the shares released by Texas Instruments from Acer, though there was no indication that Acer would not hold a controlling interest after the transactions. TI-Acer has paid-in capital of T$141.25 billion. China Development said the deal made economic sense. "Although the integrated circuit industry has rapidly changing and volatile characteristics, its long-term potential remain sound," China Development said. "This is the main consideration behind this investment." The unlisted TI-Acer is one of Taiwan's top semiconductor makers, mainly producing dynamic random-access memory chips at a financial loss, undermining parent Acer's share price. Few makers of DRAMs have made money in recent years as the market has reeled from oversupply and bruising competition. Analysts had speculated Dallas-based Texas Instruments was getting out of TI-Acer because it had lost its taste for the DRAM business. Texas Instruments executives have said the company no longer wanted to invest in TI-Acer. After the selloff, Acer plans to run TI-Acer under a new name, Acer Semiconductor Manufacturing Inc. Acer chairman Stan Shih has pledged to steer the business away from DRAMs and toward the highly profitable field of custom-made "foundry chips," a major industry in Taiwan. In selling out to Acer, Texas Instruments pledged that it and the renamed firm would share patent rights on semiconductor products for 10 years, and that the venture would be able to conduct original equipment manufacturing for other companies in addition to making its own products. Texas Instrument would continue to transfer the latest DRAM technology to the company and has committed to purchasing all of its DRAM output for one year. Before the March announcement, Acer held 48.75 percent of TI-ACER, TI owned 33.34 percent, China Development held 14.29 percent and Chiao Tung Bank the rest. Under the March agreement, Acer's stake would rise to more than 80 percent. >>>>

To: Charlie Smith who wrote (3703)	6/7/1998 1:45:00 AM
From: Clarksterh	Read Replies (2) \| Respond to of 6180

TXN losing market share in DSP's? According to the CMP article DSP's grew at >30% last year, but in the last 10Q TXN says their DSP sales grew at only 18%. Certainly not a good thing. Clark