A Little Shakeout Doesn't Scare Taiwan's Chipmakers

A global chip glut gives Taiwan a chance to grab business

Executives over at Texas Instruments/Acer Inc., the computer-chip joint venture of TI and Taiwan's leading computer maker, took a look in June at plunging prices for memory chips and did the sensible thing--they postponed construction of a $1 billion semiconductor factory. Another Taiwanese company, Hualon Co., went a step further, canceling a new plant. With Taiwanese companies building 13 chipmaking plants in the coming 18 months, no doubt other Taiwanese who have ordered expensive machinery wish they could apply the brakes, too.

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