Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: semi_infinite who wrote (30728)	5/29/1999 5:15:00 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 70976

For Saturday, May 29, 1999 Chip maker seeks Canadian partner for $2.5B plant Site not yet decided By JILL VARDY The Financial Post OTTAWA - Taiwan's Mosel Vitelic Inc. says it is looking for a partner to help pay for a projected $2.5-billion (US) computer chip plant, expected to be built in Canada next year. The semiconductor manufacturer said yesterday it is looking for a partner to help pay for the plant, which will build 12-inch silicon chips. Construction is scheduled to begin in a year. Chen Wen-yi, a spokesman for Mosel, said the site for the plant hasn't been decided. But Financial Post reported on Thursday the company is examining three potential sites in Canada. The China Times said yesterday the company was looking at building the plant in Canada or the United States. Mosel representatives are expected to travel to Montreal, Ottawa and the Vancouver suburb of Surrey in about six weeks to look at possible plant sites. Three other Canadian cities -- Edmonton, Calgary and Burlington, Ont. -- have been dropped from Mosel's list, sources said. That news prompted mayors and economic development agencies to demand that the Ontario and Alberta governments offer incentives to attract a chip plant. Both Ralph Klein, the Alberta Premier, and Al Palladini, Ontario's Economic Development Minister, have publicly said they don't want to offer any company special deals to locate in their respective provinces. So far, Quebec is the only province that appears willing to offer financial incentives to attract Mosel. Quebec has offered to pay up to $1-billion for a minority stake in any new chip factory built in its province. The equity stake would be offered through its investment arm, the societe generale de financement. The SGF already has a previous relationship with Mosel, the owner of a majority interest in Goal Electronics in Montreal, which manufactures semiconductors. SGF has also invested heavily in Goal. Mosel has partnered with German industrial giant Siemens AG on a previous $1.7-billion (US) plant in Hsinchu, Taiwan, built in 1996. Mosel makes computer memory chips for desktop personal computers, notebooks and workstations. It was formed in 1991 as the result of the merger of two private companies and trades on the Taiwan Stock Exchange.