Ruminations on the electronics industry from David Manners, Senior Components Editor on Electronics Weekly.
Fable: The Foundry Which Foundered
In 1998 a Taiwanese foundry got started backed by over a billion US dollars in equity and loans supported by 32 local banks.
The company set out to build two billion dollar wafer fabs.
In 1998, the President, an ex-TI-er, said: “We have already sold all the capacity until June 1999 – in fact I think we’ve over-committed a little bit.”
The company failed and was bought by TSMC.
Later on, the same company president set up a foundry company on mainland China operating fabs in Shanghai and Beijing.
This company also struggled, with TSMC later taking a stake in it.
Moral: Build a fab at a time.Tags: company president, foundry company, loans, shanghai, stake