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Technology Stocks : Alliance Semiconductor -- Ignore unavailable to you. Want to Upgrade?

To: Norrin Radd who wrote (4615)	2/1/1999 5:25:00 PM
From: DJBEINO	Read Replies (1) \| Respond to of 9582

Toshiba To Outsource 40% Of Chip Production To Asian Firms TOKYO (Nikkei)--Toshiba Corp. (6502) plans to outsource 40% of its annual chip production to Taiwan and Singapore firms by fiscal 2001, company sources said Monday. The outsourcing will be worth an estimated 400 billion yen. Most Japanese chip makers produce almost all of their chips at their own plants, outsourcing an average of only 5% of overall production to Asian and other foreign firms. Toshiba hopes to save on capital investment and increase price competitiveness through the production consignment. Receiving orders from Toshiba will be Taiwanese firms Winbond Electronics Corp. and Worldwide Semiconductor Manufacturing Corp. Chartered Semiconductor Manufacturing Ltd. of Singapore will also take orders from Toshiba. While these firm are not Toshiba affiliates, the Japanese electronics maker has been providing production technology to them. For fiscal 1998, Toshiba plans to procure slightly less than 10% of its 800 billion yen worth of aggregate chip production from these firms but will increase the procurement ratio to 40% of its overall production of 1 trillion yen in fiscal 2001. Winbond will produce 128 megabit DRAMs for Toshiba from this summer. The increase in production outsourcing is expected to help Toshiba save 20-30% on capital investment necessary to increase production.

To: Norrin Radd who wrote (4615)	2/2/1999 10:24:00 AM
From: DJBEINO	Respond to of 9582

TSMC, UMC, Chartered Plan to Raise Wafer Contract Prices February 2, 1999 (TAIPEI) -- Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC) and United Microelectronics Corp. (UMC) plan to raise OEM prices to maintain profitability. Taiwan's two leading semiconductor makers said they are making the move after seeing a return in wafer OEM orders and tightening demand for 0.25-micron production. This marks a sharp reversal of the situation in 1998, when the semiconductor industry reported a glut in production and the production utilization rate fell. This in turn pressed prices down. In 1999, foreign customers' orders are returning, and a number of wafer contract makers report operating at full capacity. Chartered Semiconductor Manufacturing Ltd. of Singapore also plans to raise contract prices starting in the second quarter in order to maintain profitability. An executive in charge of Chartered's Taiwan operations said his company will raise prices on 0.35- to 0.5-micron products by 20-25 percent in the second quarter, mostly in an effort to make up for losses in 1998. Starting early this year, Chartered's wafer production line has been fully booked, with ordered volume already exceeding 15 percent of available capacity. That provides the company with a solid reason to raise prices. Chartered said that at present, 0.35-micron remains the mainstream of its wafer output, while demand for 0.25-micron and 6-in. production continues to increase. The price of Chartered's 0.35-micron production fell to US$800 at the end of last year from a high of US$1,400 early last year. A hike will bring it back up to US$1,000, the executive said. An industry observer said TSMC's new prices are expected to be 10 percent above those of UMC, while the latter normally sets prices 10 percent higher than those of Chartered. nikkeibp.asiabiztech.com

To: Norrin Radd who wrote (4615)	2/2/1999 3:04:00 PM
From: DJBEINO	Read Replies (3) \| Respond to of 9582

Just talked to David Eichler the new Vice President of Finance and Administration and CFO: 1- ALSC invested very little in Maverick. At least ALSC has the CASH if they needed it.They are getting a big payout. 2- Chartered Semiconductor Manufacturing Ltd. of Singapore may also go PUBLIC (IPO) this year, along with USC 3- The LG/Hyundai merger should be good for the industry (David used to work for Hyundai) 4- We agreed that ALSC should be more visible-communicate better 5- ALSC is NOT presenting in the tech conference in San Fransisco 6- Chip prices are stabalizing. 7- Optismistic about the future of ALSC, or else he (david) will not work for them 8- Surprized that the stock is trading below book value. Should trade at about $6 now