Fri, Aug 03, 2001 - Page 17 News List

Winbond's shares rally on fab plan

STRATEGY Taiwan's top maker of memory chips for computers says it plans to build a US$3.5 billion 12-inch wafer plant. Investors reacted quickly

BLOOMBERG AND BRIDGENEWS , TAIPEI

After Winbond's plant is completed, it will convert production at its two 8-inch plants to flash memory chips and may make chips on a contract basis for Fujitsu, Liu said.

Flash memory chips retain data when electronic devices are switched off.

Winbond will decide on the source of funds for the project after it receives approval from the Hsinchu Science-based Industrial Park Administration, Liu said.

Offering stakes to companies rather than the public may help Winbond at a time when rivals such as Nanya are finding it difficult to raise money because of tumbling share prices. Nanya plans to raise money overseas after it was forced to lower its estimates of how much it could raise in Taiwan.

"It's a good idea to invite someone to share the risk," Chen said. "It's not a good time to get money from the capital markets right now with investors scared of fluctuations in the DRAM market." Winbond makes chips for Toshiba Corp and is developing the advanced production technology with the Japanese company's help.

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