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Chip maker TSMC-Acer Manufacturing Corporation (TASMC) has confirmed it is to merge with chip foundry Taiwan Semiconductor Manufacturing Company (TSMC). The consolidation with Acer's chip division will take place on 30 June, when TASMC will be absorbed into TSMC at an exchange ratio of 6-to-1 of TASMC to TSMC. The move follows a deal last June, when TSMC bought 30 per cent of Acer Semiconductor Manufacturing Inc (ASMI) from Acer Group, renaming the facility TASMC. At the time, Acer Group continued to be the major shareholder in TASMC, but TSMC effectively took over management of the foundry. Acer will still be one of the major shareholders in TSMC after the merger, Taiwan's Eurotrade reported. "The Acer Group's competitive advantages lie in its brand management strength, extensive global sales and marketing network, and system implementation and IC design," said Acer Group chairman and CEO Stan Shih. "After the merger between TSMC and TASMC, Acer can concentrate on aggressively developing its PC, peripherals and key components business and exploring opportunities in intellectual property and digital service. "Also, Acer will focus on reinforcing its IC design innovation to create new market demands for IC products." Shih had previously expressed his desire to rid Acer Group of its chip making arm. ® See also: Acer Semi to merge with TSMC?

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