Ricoh ordering more UMC advanced semiconductors

Ricoh Co, Japan's second-largest office-equipment maker, said it will boost orders for advanced semiconductors with United Micro-electronics Corp (UMC, 聯電) after the world's No. 2 supplier of made-to-order chips met Ricoh's expectations with earlier orders.

UMC will use 0.13 micron technology to supply semiconductors to Ricoh, the companies said in a statement.

The technology can be used to make the smallest chips commercially possible, which consume less power, cost less to make and help hand-held electronics companies make their products lighter and smaller.

"We are impressed with UMC's outstanding 0.13 micron support and proven world-class manufacturing," Ricoh director Kenji Wakabayashi said in the statement. "UMC has allowed us to realize the increased performance and cost benefits of this technology."

Sales of products manufactured using 0.13 micron technology made up about 6 percent of UMC revenues in the second quarter of this year, the company said.

UMC and Taiwan Semiconductor Manufacturing Co (台積電) have yet to tap Japan's market for outsourced chips. Japan accounted for 4 percent of UMC' sales and 7 percent of TSMC's in the second quarter.

Xilinx Inc, the world's biggest designer of programmable chips, said on Tuesday that it will place more orders for advanced chips with UMC because the company has better technology than International Business Machines Corp.

TSMC will start making chips for flat-panel display maker AU Optronics Corp (友達光電) next year, a Chinese-language daily reported, citing the chairman of a venture partner of AU Optronics.

AU Optronics, whose main supplier of flat-panel controller chips is Novatek Microelectronics Corp (聯詠科技), needs to find other suppliers, the report said, citing the chairman of Media Reality Technologies Inc (晶捷科技).