UMC lands 0.13-micron DSP order from TI

Dom · Aug 2, 2003, 12:56 AM

United Microelectronics Corporation (UMC) will begin 0.13-micron production of two handset-use DSPs (digital signal processors) for Texas Instruments (TI) by the end of the third quarter, with shipments beginning in the fourth quarter, according to sources.

The timing of production is related to several factors. TI’s DSP inventories should return to normal levels by the middle of the third quarter and demand should pick up due to the popularity of color-screen handsets and the approach of the Chinese New Year peak season.

UMC vice chairman Peter Chang expects the communications IC market to gradually recover in the fourth quarter. However, UMC’s production of baseband IC and other communications product lines could fall in the third quarter following the SARS-related weakness in China’s handset market, especially as certain IDMs have reduced their outsourcing.

According to foundry sources, following Motorola and STMicroelectronics (ST) reducing their proportion of orders given to UMC, TI is now UMC’s major IDM customer, with orders for digital still camera, handset and car-use instrument DSP chips.

UMC’s production for TI will exceed TSMC’s by year-end if all goes smoothly, partly because TSMC’s capacity is more fully booked, sources added.

UMC formerly lost orders from US graphics chip makers due to poor yield rates on its 0.13-micron process. However, following increases in yield rates at the fabs, UMC’s 0.13-micron process on both 8-inch Fab 8D and 12-inch Fab 12A has received certification by customers including TI and Xilinx.

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Source: DigiTimes

Aug 2, 2003, 12:56 AM	#1
Dom DriverHeaven Extreme Member Join Date: Jun 2002 Posts: 12,940 Rep Power: 0	UMC lands 0.13-micron DSP order from TI United Microelectronics Corporation (UMC) will begin 0.13-micron production of two handset-use DSPs (digital signal processors) for Texas Instruments (TI) by the end of the third quarter, with shipments beginning in the fourth quarter, according to sources. The timing of production is related to several factors. TI’s DSP inventories should return to normal levels by the middle of the third quarter and demand should pick up due to the popularity of color-screen handsets and the approach of the Chinese New Year peak season. UMC vice chairman Peter Chang expects the communications IC market to gradually recover in the fourth quarter. However, UMC’s production of baseband IC and other communications product lines could fall in the third quarter following the SARS-related weakness in China’s handset market, especially as certain IDMs have reduced their outsourcing. According to foundry sources, following Motorola and STMicroelectronics (ST) reducing their proportion of orders given to UMC, TI is now UMC’s major IDM customer, with orders for digital still camera, handset and car-use instrument DSP chips. UMC’s production for TI will exceed TSMC’s by year-end if all goes smoothly, partly because TSMC’s capacity is more fully booked, sources added. UMC formerly lost orders from US graphics chip makers due to poor yield rates on its 0.13-micron process. However, following increases in yield rates at the fabs, UMC’s 0.13-micron process on both 8-inch Fab 8D and 12-inch Fab 12A has received certification by customers including TI and Xilinx. ______________________ Source: DigiTimes