(Nikkei BP Group)
(No.1 High-Tech News Site in Japanese)
|
|
| UMC to Adjust Semiconductor Production Capacity
|
|
October 13, 1998 (TAIPEI) -- United Microelectronics Corp. (UMC) plans
to readjust the use of its production capacity and slow down construction
of new factories due to sluggish demand in the global semiconductor
market.
|
In addition to grounding a project at the Tainan Science-based Industrial
Park, UMC has been trying to maximize the flexibility of its production
capacity, hoping to catch the starting point of the rise of another
business cycle.
Last year's fire at United Integrated Circuits Corp. (UICC), an affiliate
of UMC, prompted UMC to shift UICC's orders to two other affiliates
-- United Semiconductor Corp. and United Silicon Inc.
UMC's fifth wafer plant is now in the middle of construction, while the
restoration of the UICC plant continues. However, the scheduled clean-room
restoration project has been delayed, and UMC has pushed back the timetable
of the restoration project due to an overall slump in the semiconductor
market.
According to the current schedule, the installation of production equipment
at UICC will begin in June 1999, to be ready for test production in
August of the same year. UMC's fifth wafer plant will see equipment
installed in May 1999. The UMC plant's average monthly output is 32,000
units, while that of the UICC plant is 27,000 units.
To lower the cost of expansion while preventing over production at this
stage of a bearish market, UMC has been negotiating mergers and acquisitions
with overseas semiconductor firms. The consortium just recently merged
a Japanese semiconductor maker, and has expressed interest in developing
strategic alliances with European manufacturers in the future.
Related story: Two Top Taiwan Foundries to Expand Capacities Overseas
(Commercial Times, Taiwan)
|
|
|
