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To: Curlton Latts who wrote (20982)	2/2/1999 6:08:00 PM
From: FJB	Respond to of 25960

I think the author meant to use the word supply instead of demand, but you get the point. 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. nikkeibp.asiabiztech.com