PHILPS semiconductor said it would increase the importance of outsourcing market in China

According to foreign media reports, PHILPS semiconductor (Philips Semiconductors) CEO Frans van (Frans van Houten) Hutton said in an interview, in view of its production processing factory has been completely saturated, it will increase the product outsourcing partner for TSMC (TSM) and Taiwan manufacturers, and will further attention the operation of the market. The following is a summary of the interview:

Q: is PHILPS restructuring the semiconductor business unit? Increase the amount of outsourcing, will you have a stake in TSMC's impact?

A: we will continue to increase the total amount of outsourcing, outsourcing ratio will be increased from the current 20% to 30%~50%, but we have not set a clear timetable for this. At present, all the products in PHILPS, 80% for their own manufacturing, the rest are from the industry and commerce. We are in the French Crolles12 inch factory capacity will soon be saturated, in this case, we can only consider increasing outsourcing business. In addition to TSMC, we are willing to cooperate with other Taiwan manufacturers. The PHILPS stake in electric product in Taiwan problems, which need to be considered, my personal inconvenience comments (PHILPS currently holds a 16.6% stake in TSMC, the two companies agreed in 20006 years before to maintain equity status).

Q: what do you think of the development trend of the semiconductor industry in the second half of 2005 and in 2006? Do you have a capital expenditure plan for next year?

A: I believe that during the second half of 2005, the semiconductor industry output value will be a slight increase in the current inventory of manufacturers still maintain a reasonable level. As for the period of 2006, taking into account the overall global economic environment, the semiconductor industry is expected to moderate growth. We expect the next year, with TV functions PC, multimedia phones and digital broadcasting equipment will become an important growth point. By then, the various ODM manufacturers in Taiwan will benefit from.

Q: please talk about the details of the reorganization of PHILPS semiconductor business.

A: We completed the reorganization in May this year and set up the Greater China business district with a view to marketing. Specific to the product line, we have set up four major sectors: home, mobile, automation and personal computer business.