■ UMC expects higher chip prices
United Microelectronics Corp (UMC, 聯電), the world's No. 2 supplier of made-to-order semiconductors, expects chip prices, which started rising this year, to continue gaining in the second half because demand exceeds supply, a Chinese-language newspaper reported, citing company vice chairman John Hsuan (宣明智).
The increases that started in the first half follow more than a year of declining prices as the semiconductor industry has begun emerging from a slump, the report said.
On April 28 UMC said its capacity in the first quarter was 100 percent and would remain at that level for the second quarter. Selling prices were expected rise 5 percent in the second quarter over the first quarter and shipments were expected to increase by 10 percent, the company added.
UMC's larger rival, Taiwan Semiconductor Manufacturing Co (台積電), also said it expects average selling prices for the chips to rise in the second quarter.
■ Motorola wins contract
Motorola Inc announced yesterday that it had won a US$3.5 million (NT$117.2 million) contract to supply the Coast Guard Administration with a digital radio system.
The system -- which is to include 422 portable radios for officials and 38 mobile radios for vehicles and boats -- will replace conventional analog equipment, the US company said. The new system will be more secure and will be able to transmit both voice and data, the company said.
The equipment will be used by the coast guard on Penghu, the company said.
Motorola specializes in wireless, broadband and automotive communications. The Schaumburg, Illinois-based company's sales last year were US$27.1 billion.
■ LCD demand strong: Samsung
Global demand for liquid-crystal displays for televisions and monitors will exceed supply in the second quarter, fueled by demand for flat-screen televisions, a Samsung Electronics executive said.
"There's not going to be oversupply this quarter," said Souk Jun-hyung, director of LCD research and development for Suwon, South Korea-based Samsung Electronics.
"You can tell concerns about oversupply are unfounded as we still see a shortage of LCD components," he said.
Souk, who spoke at an industry conference hosted by researcher Displaybank in Seoul, declined to specify by how much demand will exceed supply.
■ Energy delegation in Manila
Vice Minister of Economic Affairs Steve Chen (陳瑞隆) arrived in Manila Wednesday to attend a ministerial-level meeting on energy at the APEC forum that opened yesterday.
Chen is accompanied by 13 officials from the Ministry of Foreign Affairs, Taiwan Power Co (台電), Chinese Petroleum Corp (中油) and the Industrial Technology Research Institute.
The delegates from Taiwan expect to voice their opinions make proposals in the meeting, which is being held to work toward both long-term and short-term ways to secure energy supplies amidst rising oil prices in the international market.
While in Manila, the delegation will also hold two-way talks with counterparts from Australia, New Zealand, the Philippines and Japan to exchange opinions on a wide variety of cooperative ventures related to consumption and shared energy exploration, Chen said.
■ NT dollar falls
The New Taiwan dollar yesterday turned lower against its US counterpart, declining NT$0.105 to close at NT$33.530 on the Taipei foreign exchange market.
Turnover was US$599 million.
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