(Nikkei BP Group)
(No.1 High-Tech News Site in Japanese)
| IBM Earns Large Royalties via Tech Transfers to Taiwan
December 16, 1998 (TAIPEI) -- IBM Corp. is positioning itself to continue
earning large royalty payments from Taiwan's microchip makers, based
on its extensive portfolio of proprietary semiconductor technology.
|Already, IBM has transferred 0.17-0.25 micron semiconductor technology
to Acer Semiconductor Manufacturing Inc. (ASMI) and Nan Ya Technology
Corp. And recently, the Armonk, New York-based company signed a deal
with Pacific Electric Wire & Cable Corp. to transfer 0.15-0.25 micron
These three deals are expected to result in very large multiyear payments
The royalties paid by Nan Ya Technology and Pacific Electric Wire & Cable
are judged to be substantial. However, ASMI is likely to be paying somewhat
less for logic IC technology and 0.25 micron wafer processing technology,
industry observers said.
Although the semiconductor market had been stuck in a recession, IBM
is emerging as a major winner by exporting its patented know-how. Each
year, the U.S. computer giant reaps large payments from royalties and
Also, IBM's alliances with Taiwan-based manufacturers helps it expand
its wafer foundry business in Asia.
Pacific Electric Wire & Cable's semiconductor plant is scheduled to begin
8-in. wafer production in 2000.
Local analysts said that such an investment is not likely to be profitable
because 8-in. wafers may have become virtually obsolete by 2000. Also,
the relatively small output in the initial stage of production will
be no match for the immense volumes of United Microelectronics Corp.
and Taiwan Semiconductor Manufacturing Co., Ltd.
Nevertheless, the risk on the part of IBM is limited, as Taiwan-based
semiconductor makers pay royalties regardless of their profits.
(Commercial Times, Taiwan)
<Visit News Center for more Asian news.>