Science-Based Industrial Park, Hsinchu, Taiwan, July 7, 2000 -- Taiwan Semiconductor Manufacturing Company (TSMC) (NYSE:TSM) today celebrated the successful completion of the mergers of TASMC and WSMC into TSMC. Completion of the mergers is expected to allow TSMC to reach its stated goal of 3,400,000 8-inch equivalent wafers in 2000. In addition, the merger has resulted in the addition of more than 3,000 professionals from the TASMC and WSMC organizations after consolidation of all three companies.
TSMC Chairman Dr. Morris Chang stated, “TSMC’s corporate culture of ‘jumping through the hoops’ for the benefit of our customers was the motivation for the mergers of TASMC and WSMC. When it became apparent that our customers required substantially increased capacity in 1999, we moved aggressively to support that demand, accelerating our fab construction schedules and initiating the acquisitions of TASMC and WSMC. In 1999, TSMC also invested more than NT$100 billion in new fabs and advanced manufacturing equipment. Through all of these efforts, we hope to provide our customers in the system house, IDM and fabless semiconductor markets with the capacity they need.”
“Enhancing the capacity through merger may cost much. But it reflects TSMC’s attitude of ‘sparing no effort’ to satisfy our customers. We have been rewarded by securing the acknowledged leadership position in the global foundry business,” said Dr. Chang.
Acer Group Chairman and CEO Stan Shih stated, “TSMC is the best and most reputable foundry in the world. In terms of the long-term strategy and specialization, we support this merger, believing it to be in the best interests of the shareholders at Acer Group and TASMC. Moreover, with this merger TSMC will be the best and most reliable manufacturing service source for Acer in the future.”
Benny T. Hu, President of China Development Corporation and former Vice Chairman of WSMC, said, “Since WSMC’s establishment three and a half years ago, WSMC has built a strong foundation for future growth as a result of the excellent performance of its management team and employees. The combination of WSMC and TSMC would enable TSMC to gain stronger competitive advantages in the global market. Meanwhile, the merger is in the best interests of WSMC’s shareholders.”
TSMC president F.C. Tseng said, “With the unique management and corporate culture of TSMC, all the employees of each organization -- including the newcomers have easily transitioned into a smooth-working team of more than 13,000 employees. TSMC’s paid-in capital also increased to approximately NT$115.7 billion (approximately NT$116.8 billion if the recent issued ADR shares are included). More importantly, TSMC’s total annual capacity for 2000 will increase by 700,000 8-inch wafers, due entirely to the mergers. TSMC’s total annual capacity in 2000 is expected to reach 3,400,000 8-inch wafers, a 90% growth over 1999, further enhancing our competitive advantage in the market.”
TSMC first moved to gain additional capacity at TASMC in June of 1999 through the acquisition of 30% of TASMC shares. With continued strong demand indicated late in 1999, TSMC moved to acquire all of TASMC and WSMC. Currently, 75 percent of the capacity in TSMC Fab 7 (TASMC) is utilized by customers of TSMC. Half of the capacity in TSMC Fab 8 (WSMC) has also been re-engineered for TSMC processes since the beginning of 2000. According to internal statistics, the capacity demands of some 40 TSMC customers has been satisfied by the two new TSMC fabs. This number is expected to grow as capacity utilizing TSMC processes is increased.
“Apart from contributing capacity and revenue, the implementation of the mergers is a dramatic proof of TSMC’s long-term commitment to our customers,” said Mr Tseng. “We es