Skip Links

Network World

  • Social Web 
  • Email 
  • Close

(Comma separation for multiple addresses)
Your Message:

More Taiwanese chip makers slash spending

By Dan Nystedt , IDG News Service , 01/30/2008
  • Share/Email
  • Tweet This
  • Comment
  • Print

Three more Taiwanese chip makers plan to spend significantly less money on new factories and equipment this year as a dynamic RAM glut and uncertainty about the global economy weigh.

Lower capital spending forecasts in the chip industry are a sign the global IT industry is on edge about future demand. Analysts have expected DRAM makers to cut back on spending for a long time because of falling chip prices. Prices for mainstream DDR2 (double data rate, second generation) chips remain below production costs, and most DRAM makers have reported losses for the fourth quarter.

Powerchip Semiconductor, Taiwan's largest memory chip maker, Wednesday said it plans to spend NT$35.1 billion ($1.09 billion) on new chip factories, technology and production line equipment this year, less than half the NT$86.3 billion it spent last year.

Powerchip's smaller rival on the island, ProMOS Technologies, also more than halved its projected 2008 capital spending to $800 million, down from $1.84 billion last year. The company also put the expansion of its fourth 12-inch factory on hold pending a rebound in the DRAM market.

United Microelectronics (UMC), the world's second largest contract chip maker, forecast its 2008 capital spending at $500 million to $700 million, down from $900 million last year.

The company's customers have turned cautious because of global economic worries, said Jackson Hu, CEO of UMC, at an investors' conference in Taipei on Wednesday. The company forecast its chip shipments will decline as much as 15% in the first quarter, compared with the fourth quarter of last year as chip demand weakens, particularly for communications chips.

Global semiconductor equipment spending is forecast to fall 9.9% to $40.3 billion this year, from $44.8 billion last year, according to Gartner. The market researcher blamed over-investment by DRAM makers in 2007 for the cutback in semiconductor capital spending this year. Concerns about a U.S. economic recession have also put chip makers in a cautious mood, Gartner said in a report published early this month.

  • Share/Email
  • Tweet This
  • Comment
  • Print

Partner Content

Gartner 2009 Magic Quadrant for Job Scheduling

Gartner has positioned BMC CONTROL-M in the Leaders Quadrant of their "2009 Magic Quadrant for Job Scheduling." The report assesses the ability to execute and completeness of vision of key vendors in the marketplace. Read a full copy today, courtesy of BMC Software.

Download whitepaper

Dell's SMART Approach to Workload Automation

Read a compelling case study by EMA, Inc. to learn how Dell uses BMC CONTROL-M to cut cost and increase productivity with workload automation.

Download whitepaper

Workload Automation Cost Savings 2 Minute Video

A major computer manufacturer uses BMC CONTROL-M and just four people to schedule and run over 85,000 jobs every month. By switching to BMC CONTROL-M, they more than quadrupled the workload without adding a single staff member.  See how in this 2-minute video overview.

Go to video

Comment
Login
Forgot your account info?
Add comment
Anonymous comments subject to approval. Register here for member benefits.
Have a NetworkWorld account? Log in here. Register now for a free account.

Videos

rssRss Feed