Digitimes, 13 Nov 2008, Claire Sung, Taipei; Jessie Shen, DIGITIMES
Song-Hwee Chia, CEO of Chartered Semiconductor Manufacturing, is scheduled to pay a low-profile visit to Taiwan next week, with speculation abounding that he will be in talks for a merger deal with the local foundries, according to market sources.
According to the sources, Chia may be talking with United Microelectronics Corporation (UMC) during the upcoming trip.
Reuters reported on October 27 that Taiwan Semiconductor Manufacturing Company (TSMC) was rumored to be in merger talks with Chartered. TSMC CEO Rick Tsai has denied the rumors.
But UMC CEO Shih-Wei Sun has remarked that the ongoing economic slump will bring about a consolidation in the industry and UMC will be glad to see mergers happen.
Chartered's consolidation with one of the top-two foundries would definitely bring a significant change to the foundry industry, with TSMC growing even bigger or UMC narrowing its gap with TSMC, according to market watchers. Currently Chartered has a 7.4% market share, the observers noted.
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Rumor mill: Chartered seeks buyer - EE Times, 13 Nov 08
