17:19 ET TAIWAN'S CHIP-DESIGN HOUSES SET UP SHOP IN JAPAN
Aug 14, 2000 (Tech Web - CMP via COMTEX) -- HSINCHU, Taiwan -- Faraday
Technology Corp. and two other Taiwanese chip-design houses are planning to
establish offices in Japan to garner business from the world's second-largest
semiconductor manufacturing market.
Faraday, which provides ASIC and intellectual-property design services, is
slated to open a sales office in Tokyo in the fourth quarter.
"The market is significant," said Frankwell Lin, a vice president at Faraday,
Hsinchu, Taiwan. "Our target customers include all of the big names like
Toshiba, NEC (stock: NIPNY), you name it." Faraday is about 20 percent owned by
semiconductor-wafer foundry United Micro Electronics Corp. (UMC).
Faraday and two smaller chip-design houses, Elan Microelectronics Corp. and
Integration Circuit Solution Inc., both based in Hsinchu, Taiwan, are eager to
tap into increasing Japanese demand, analysts said. The country will buy $1.74
billion worth of semiconductor products from Taiwan this year, a jump of 30
percent from 1999, according to Taiwan's Industrial Technology Research
Faraday is expecting its overseas business to constitute 50 percent of total
sales in coming years, increasing from a forecast of 40 percent this year, Lin
said. The company has raised its 2000 sales target by 16 percent, to $70
million, reflecting better-than-expected demand.
Elan and analog and mixed-signal designer Integration Circuit are scheduled to
open their offices in Japan next year.
Although no Japanese companies have specifically indicated plans to turn to
Taiwan for chip-design services, analysts say it's just a matter of time.
Japanese semiconductor makers can benefit from Taiwan's cheaper costs and the
solid foundry support offered by UMC and Taiwan Semiconductor Manufacturing Co.
Ltd. (TSMC), the world's top two pure-play foundries, said Eric Wang, head of
regional semiconductor research at ABN AMRO in Taipei.
Taiwan has increasingly become a high-tech outsourcing center for Japan. TSMC
(stock: TSM), a manufacturer for Fujitsu, NEC, and other Japanese companies,
said about 7 percent of its second-quarter sales were generated in Japan, up
from about 5 percent in the first quarter.
UMC said its orders from Hitachi (stock: HIT) are increasing, while the two
companies early this year agreed to build a joint 12-in.-wafer fab in Japan.
Meanwhile, Toshiba is outsourcing its DRAM production to Winbond Electronics
Corp., Hsinchu, Taiwan. Mitsubishi has a similar arrangement with Powerchip
Semiconductor Corp., Hsinchu, Taiwan.
Consumer electronic products, such as DVD players and digital cameras, are
likely to be among those that Taiwan's design houses will be targeting, said
Alfred Yin, a vice president at Primasia Securities Co. in Taipei.
Copyright (C) 2000 CMP Media Inc.
17:19 ET WRAP: BROADCOM TO BUY NEWPORT COMMUNICATIONS FOR $1.24 BILLION
By BridgeNews New York--Aug. 14--Broadcom Corporation, the provider of
integrated circuits enabling high speed broadband communications, said Monday it
has agreed to buy optical communications chip maker NewPort Communications Inc.
in a stock deal worth $1.24 billion, extending Broadcom's reach in the
17:19 ET AMD UNDERCUTS INTEL WITH LATEST CHIP PRICES
Aug 14, 2000 (Tech Web - CMP via COMTEX) -- Advanced Micro Devices Inc. finally
agreed to reduce the price of its 1-GHz Athlon microprocessors, introducing its
1.1-GHz Athlon in the process.
17:19 ET NO STRIDES IN VERIZON STRIKE
New York, Aug 14, 2000 (123Jump via COMTEX) -- As communications company
Verizon (NYSE:VZ) enters its ninth day of strikes, union leaders claim
negotiations are regressing due to Verizon's most recent proposals that union
workers say do not address many key issues that affect Verizon employees.
17:19 ET IBM ADDS LINUX TO THIN-CLIENT COMPUTERS
Aug 14, 2000 (Tech Web - CMP via COMTEX) -- IBM, which recently announced that
it wants to make Linux available throughout its products, has taken the first
steps closer to meeting its goal.
14:49 ET CA'S FATE RESTS IN KUMAR'S HANDS
Aug 14, 2000 (Tech Web - CMP via COMTEX) -- Computer Associates president and
chief operating officer Sanjay Kumar sensed this meeting was unlike any of the
regular breakfast or lunch meetings he had held over the years with CA founder,
chairman, and CEO Charles Wang.
14:49 ET INDIAN GOVT WITHDRAWS STATEMENT ON ACTION AGAINST MICROSOFT
NEW DELHI, Aug 14, 2000 (AsiaPulse via COMTEX) -- In a curious development, the
overnment withdrew a statement on action against global software giant Microsoft
for alleged unfair trade practices in India, a charge contested by the company.
14:49 ET CHINA TO FOCUS ON SOFTWARE INDUSTRY DEVELOPMENT
BEIJING, Aug 14, 2000 (AsiaPulse via COMTEX) -- China will take measures to
accelerate the development of its software industry over the next five years,
said an official of the Ministry of Science and Technology.