|
UMC to reduce capex significantly for 2008 |
|
|
|
Oct 31, 2007 at 03:51 PM |
|
 Following on from TSMC’s shock announcement that capital spending would be significantly reduced for 2008 and beyond, UMC has also stated that capital spending would be significantly reduced compared to 2007.
In almost identical reasoning as that given by TSMC, UMC said that it had boosted productivity from its fabs due to programs focused on critical tools (lithography).
Although UMC did not specify what the level of CapEx would be in 2008, executives highlighted in a conference call with financial analysts that the foundry would focus spending on migrating a significant amount of existing 130nm capacity to 65nm by the end of 2Q08 in anticipation of an expected ramp of 65nm products.
UMC executives stated that it has 20+ products at various stages of prototyping to production at the 65nm node with approximately 4 percent of revenues coming from 65nm wafers in 4Q07.
However, executives noted that they did not expect high-volume production at the 65nm node until 3Q08 with the potential then for 25 percent growth rate at that node.
The company also noted that it was experiencing strong demand for 200mm wafers at the 180nm node and that the foundry would add further capacity in that area.
|
