Hsinchu, Taiwan, MAY 15, 2001 --Taiwan Semiconductor Manufacturing Company Ltd. (TSMC or the “Company”) (NYSE: TSM) today held a meeting of the Board of Directors, at which the Board approved the sale of all TSMC shares of Taiwan Semiconductor Technology Corporation (TSTC) to Amkor Technology Inc.
Ms. K. C. Chen, TSMC spokesperson, stated that TSMC can win more options and greater flexibility in adjusting its current long-term investment portfolio through its investment on Amkor Technology, the world’s largest provider of contract microelectronics manufacturing services.
The major conclusions of this Board meeting are as followed:
The Board approved the sale of all TSMC shares of TSTC, totaling 50,000,000 shares, to Amkor Technology Inc. In exchange, TSMC will receive NT$ 115,000,000 in cash and 505,050 NASDAQ-listed shares of Amkor Technology stock. Also, 12 months after closing of the transaction, if TSTC meets its 2001 revenue plan, TSMC will receive an additional NT$ 86,500,000 (or Amkor shares of equivalent cash value) as profit sharing at the value of NT$1.73 for each TSTC share. The Board approved an increased investment in TSMC Japan K. K. in the amount of ? 180 million, to further develop TSMC’s market share in Japan and provide Japanese customers with necessary technical support.
TSTC, a dedicated IC packaging service provider, is a joint venture founded by Acer group, Amkor Technology Inc., Taiwan Semiconductor Manufacture Corporation, United Test Center Inc., and ChingFong S&T on July 1, 1998. The company plan to bring in world leading IC packaging solutions to provide Taiwan local and worldwide IDM (Integrated Device Manufacture) and IC design industry customer with the best choice of quality and service. TSTC is located at Linkou 2'nd Industrial Park, Taipei with a sales office in Chupei, Hsinchu.