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To: Paul Lee who wrote (4210)	11/4/1998 10:11:00 PM
From: DJBEINO	Read Replies (1) \| Respond to of 9582

Acer cuts DRAMs, pushes logic with IBM technology By Jack Robertson HSINCHU, Taiwan -- Acer Inc. has cut DRAM production by two-thirds at a wafer fab formerly operated by the Texas Instruments-Acer joint venture, according to company president Simon Lin. In an interview today, Lin said the plant is now producing about 3 million DRAM a month. "We will continue to produce DRAMs at about this level," he said "DRAMs are a technology driver for us, and we can also expand production rapidly if the market bounces back." Acer is moving ahead on plans to shift DRAM capacity to embedded memory and logic chips for both its own computer operations and for silicon foundry customers. Earlier this year, the Taiwan company created Acer Semiconductor Manufacturing Inc. after buying TI's shares in the former DRAM joint venture (see April 6 story). Lin said he felt Acer Semiconductor Manufacturing was in a better position than many other Taiwan foundries because the company's computer divisions already have an extensive IP library available for chip designers. Even so, he said, "Our library is not enough and we will be looking to acquire other core designs." Acer hopes to leverage its logic chip technology exchange with IBM Corp. to expand its nascent foundry business, Lin said. Acer announced a licensing agreement with IBM last summer ( June 26 story). "We will duplicate much of the IBM semiconductor processing to become a second-source supplier to IBM foundry customers," Lin said. "They can come to us with assurance that Acer will be able to produce identical chips that they are getting from IBM." Lin said the IBM technology will allow Acer to move quickly from quarter-micron wafer processing to 0.18-micron design rules. He expected the first 0.18-micron pilot line to start next April with full production beginning in the third quarter of 1999. semibiznews.com