Texas Instruments plans to double chip outsourcing

Texas Instruments Inc, the world's biggest maker of semiconductors for cellular phones, said it plans to double production of its chips at Taiwan Semiconductor Manufac-turing Co (台積電) and United Microelectronics Corp (聯電).

Orders to the two made-to-order chipmakers will account for a fifth of Texas Instruments' output, up from 10 percent now, as demand recovers, Texas Instruments spokeswoman Chris Rongone said, confirming a report on the EETimes Web site.

Dallas-based Texas Instruments follows STMicroelectronics NV, Royal Philips Electronics NV and Motorola Inc, which last week said that they will use TSMC's chipmaking technology in a European plant. TSMC said earlier this year it expects 2002 sales to rise about 30 percent as more companies farm out production to keep costs low.

Texas Instruments will start making chips at TSMC, the largest maker of chips for other companies, in mid-2002 and reach volume production in a few years, the report said, citing Bill Aylesworth, chief financial officer of Texas Instruments.

The company Tuesday said profit in the quarter ending in June 30 will beat forecasts because orders are rising from customers such as Nokia Oyj, the largest cellphone maker, and Motorola.

Texas Instruments decided to increase orders to TSMC to pare spending, the report said, adding that the company will shift some production to UMC, TSMC's largest rival.

Chartered Semiconductor Manufacturing Ltd (特許), which makes chips for companies such as Broadcom Corp, may report its fifth straight quarterly loss as it fights to keep up with rivals, investors said.

Chartered is expected to say its first-quarter loss widened to US$0.97 an American depository share from a loss of US$0.02 in the year-ago period, when it reports its results tomorrow, according to the average estimate of five analysts surveyed by Bloomberg News. Sales are estimated to have fallen to US$78.9 million from US$207 million, the poll said.