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To: Jeffrey D who wrote (30807)	6/3/1999 1:27:00 PM
From: Duker	Respond to of 70976

Samsung to build a new 256-Mbit DRAM production line in Korea A service of Semiconductor Business News, CMP Media Inc. Story posted noon EST/9 a.m., PST, 6/3/99 By Jack Robertson WASHINGTON -- Samsung Electronics Co. plans to construct a new 256-megabit DRAM production line in Korea in 2000, at an unspecified level of capital investment, a spokesperson told SBN today. Samsung makes limited quantities of 256-Mbit chips on its most advanced current lines in Kiheung, Korea. The new 0.18-micron Line 9, also being installed in Kiheung, is expected to be capable of mass-producing the 256-Mbit chips.. The spokesperson didn't elaborate on any further details of the upcoming 256-Mbit line. However, industry sources believed it could use the next-generation 193-nm-wavelength deep-ultraviolet lithography system to continue the DRAM shrink race through the 256-Mbit generation. All the new capacity is expected to keep the Korean firm in a dominant global position for the next generation of DRAMs. It would match the production ramp-up of Micron Technologies Inc. and the newly-announced production hike in new generation DRAMs by NEC Corp. The investment in the 256-Mbit plant would be part of a new $3 billion stock rights sale that Samsung is floating on the market this month. The spokesperson said the total capital expenditure for the new DRAM line hasn't been set yet. A portion of funds would also be used to expand existing chip lines, although no details were given. The remainder of the cash will be used to retire existing debt, and expand production lines for telecommunications equipment. An erroneous wire service story Wednesday stated that Samsung would use the entire $3 billion for semiconductor capital investment. Confusion remains over the level of Samsung Electronics' projected capital spending in semiconductors for 1999, however. Officials at Samsung Electronics America Inc. in San Jose said chip expenditures this year would be just under $1.8 billion. But the company spokesperson in Seoul said that semiconductor capital investment will be $1.2 billion.

To: Jeffrey D who wrote (30807)	6/3/1999 1:29:00 PM
From: Duker	Read Replies (1) \| Respond to of 70976

TSMC to make investment in Acer fab A service of Semiconductor Business News, CMP Media Inc. Story posted 1 p.m. EST/10 a.m., PST, 6/3/99 By Mark Carroll TAIPEI, Taiwan ( ChipWire/EET) -- Taiwan Semiconductor Manufacturing Co. (TSMC) and Acer Semiconductor Manufacturing Inc. (ASMI) are currently negotiating for TSMC to take a stake in ASMI's 8-inch wafer fabrication facility in Hsinchu, Taiwan. Details of the deal could be completed in the next month or two. The deal has near- and long-term implications for TSMC. "We are at first looking at ASMI as a capacity provider," a TSMC spokesman said. "This deal is not just a matter of satisfying near-term demand, but is the beginning of a strategic alliance with Acer Group," the parent of ASMI. TSMC may buy some ASMI stock from Acer, the majority stockholder in ASMI. "We are still negotiating with Acer," the TSMC spokesman said. "If it does happen, it will be pretty soon." TSMC said one reason it is acquiring an interest in ASMI's 8-inch facility is to increase production in order to meet current demand. That will not happen immediately, however. "We will need at least six months in order to transfer technology and management as well as install new machinery," the TSMC spokesman said. "Currently, ASMI is primarily a DRAM maker, so there is a lot of new equipment that needs to be installed, as well as the transferring of technology and fabrication expertise." ASMI was formed over a year ago when Texas Instruments Inc. gave up its stake in TI-Acer Inc., a joint venture (see April 6, 1998, story). Stan Shih, chairman and CEO of Acer, has personally run ASMI for the past year in an attempt to change it from a DRAM production facility into a foundry. Turning part of ASMI over to TSMC for cash may be a smart move for the ailing fab, said observers here.