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To: Stoctrash who wrote (33940)	6/19/1998 6:12:00 PM
From: DiViT	Respond to of 50808

Winbond sees Fab IV wafer output at 15,000/mth towards yr-end 06/18/98 AFX (AP) Copyright 1998 AFX News; Source: World Reporter (TM) Winbond Electronics Corp said its Fab IV, inaugurated this morning, is expected to increase its monthly output of 8-inch wafers to 15,000 units towards the end of the year from an initial 8,000. Given a total outlay of 35 bln twd, Fab IV will serve as the first plant devoted to making 64-megabit dynamic random access memory chips in Winbond's strategic alliance with Toshiba Corp, it said. This will be followed by a Fab V at the end of 1999, which will make 64MB or 256MB DRAMs, it added. Winbond chairman Arthur Chiao said the company's DRAM output is expected to top 100 mln twd in July and rise further to 600 mln in December. Separately, executive vice president Chang Ching-chu said DRAM output is expected to be worth more than 3.0 bln twd for the current year, with such operations seen likely to break even. Winbond's yield ratio for 64 megabit DRAMs using 0.25 micron processing technology has reached about 80 pct, while that for 0.35 micron production stands at about 90 pct, Chiao said. Chiao said the semiconductor industry is now at its bottom but will see fast growth in the coming years. The company sees growth in annual sales to about 60 bln twd in 2001 from a forecast 21.2 bln this year, he said. Company officials said third quarter prospects are yet unclear given the very short lead time. A company official who declined to be identified said lead time at the moment is shorter than one month, and they are still working on July contracts. The official said capacity utilisation rate at present is above 80 pct. However, he said the company expects improvements in the last quarter, which is traditionally the peak season. Company president Yang Ding-yuan said operating margin is anticipated to be higher than the 9.3 pct posted in the first quarter. Chiao said his company currently awards part of static random access memory (SRAM) chips contracts to Standard Charter of Singapore. Winbond will subcontract some SRAMs production to its unit Worldwide Semiconductor Manufacturing Corp in the future, he said. Worldwide is anticipated to start a pilot run next month, with mass production seen in October. Chiao said the unit will start processing technology with 0.25 micron. Worldwide in the future will also make logic integrated circuits for Winbond, he added. Chiao said Winbond is also making commitments in the production of flash memory chips, besides providing total solutions in chips for video compact disks (VCDs). The company is now the second-largest supplier of VCD chips in China. Separately, the executive said he is optimistic about another unit that will produce liquid crystal displays. "When the industry can cut cost to make more affordable LCDs for end-users, the factor of lower prices will stimulate demands for LCDs," he said. The LCD unit will receive technology support from Toshiba. Toshiba and Walsin Lihwa group, of which Winbond is a unit, are in strategic alliance for DRAMs, LCDs, and integrated circuits packaging and testing. In a speech addressed at Taipei, Toshiba official Nishimuroatthe said "I am pleased to learn that the new facility delivered its first 64 MB DRAM samples last December, three months ahead of schedule, and wafer yields and performance were exceeding expectations. "Despite the current tough situation in DRAM business, Toshiba is aggressively developing the most advanced semiconductor technology with the design rule of 0.17 micron, 0.15 micron and beyond, jointly with IBM and Siemens." When asked whether the Walsin Lihwa group will focus future investments in high-techs, Chiao said a group should not inject all resources into only one industry, citing Walsin Lihwa Corp's investments in wires and cables production in China. "That (wire and cable) industry is a cash cow," he said. Winbond closed limit-up 2.10 twd at 33.10 on volume of 34.67 mln shares.