NOTE 4: JOINT VENTURE
The Company, United Microelectronics Corporation (UMC) and other parties have entered into a joint venture to construct a wafer fabrication facility in Taiwan, known as United Silicon Inc. (USI). The Company has agreed to invest a total of 3.75 billion New Taiwan dollars (approximately $136 million), which will result in a 25% equity ownership in the joint venture and the right to receive 31.25% of the wafer capacity from this facility. In January 1996, the Company invested 937.5 million New Taiwan dollars (approximately $34 million) in the joint venture. UMC has committed to and is supplying the Company with wafers manufactured in an existing facility until capacity is available in the new facility. The USI joint venture is accounted for by the equity method. See further discussion in Note 6 of Notes to Consolidated Financial Statements.
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Report 1997 |
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