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Taiwan Memory Producers ProMOS Technologies And Powerchip Semiconductor Are

Taiwan memory producers ProMOS Technologies and Powerchip Semiconductor are following TSMC's lead and have announced plans to build fabs in Mainland China (Bulletin 450, September 16, 2002). The Taiwan government has restricted the number to three fabs that can be built on the Mainland by its local companies before the end of 2005. The government is also demanding that Taiwan companies build 300mm on the island and run them at mass production levels before applying for Mainland investments.
ProMOS has a 300mm facility which it says will soon pass the government
qualification criteria. ProMOS plans to build at least one new facility next
year at a cost of $3.5bn. Capital expenditure for 2003 is to be doubled to
$590mn. The company is 48% owned by Infineon Technologies.
UMC is also expected to put forward proposals early next year. The Taiwan
foundries want to be in a position to compete effectively against Mainland
start-ups such as SMIC and Grace Semiconductor.
Powerchip is seeking to partner on its Mainland investment, Mitsubishi
Electric being one possible suitor.
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