Wednesday, January 22, 2003
Taiwan Semiconductor Manufacturing Co. Ltd. is expected to drop its capital spending 27 percent to 39 percent from $1.7 billion in 2002 to between $1 billion and $1.2 billion this year, while United Microelectronics Corp. is expected to cut its capex by 37.5 percent from $800 million in 2002 to $500 million this year, according to a report from DigiTimes based on the Chinese-language Economic Daily News.
Cuts would not be surprising, as TSMC lowered it capex twice in 2002 and UMC lowered its capex after doubling it in Q1 2002.
Investment analysts attributed the anticipated capex cuts at the foundries this year to a slowdown in 12-inch expansion plans due to overcapacity last year, the report said.
TSMC could not be reached and UMC would not comment on the report, but news on their respective spending is expected to be included in their quarterly reports next week.
The cuts, however, would not outdo Intel Corp.'s announced decrease in capital spending, bringing its 2003 capex down about $1 billion. Intel attributed the cut to between $3.5 billion and $3.9 billion from 2002's $4.7 billion to greater efficiency in 300mm processes.
In contrast, Samsung Electronics last week raised its 2003 capex 39 percent to $5.1 billion from its $3.6 billion.
By: DocMemory
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